# Contractor Code Ownership: How to Protect Your Automation

> Learn how to secure contractor code ownership and keep your automation IP safe with clear contracts, source‑code handover, and NDA protections.

- Author: Yaroslav Maxymovych (Founder & CEO, AI Advisory Board)
- Published: 2026-09-06
- Updated: 2026-10-21
- Source: https://aiadvisoryboard.me/blog/contractor-code-ownership-how-to-protect-your-automation

When a company hires a contractor to build an automation, the question of who actually owns the code and the result arises. Without clear agreements, you can easily lose control of your intellectual property, leading to dependency on the vendor or losing the ability to modify the solution. Establishing clear contractor code ownership from the start protects your investment and keeps the automation under your control.

## TL;DR
- Define code rights in the contract before work begins.
- Ensure the automation runs on your tools and data.
- Keep all artifacts (scripts, configs, data) in your repository.

### How to Secure Contractor Code Ownership in the Contract
1. **State that the code is a work made for hire** – this standard wording transfers copyright to the client.
2. **Include a clause transferring all rights** – prevent the contractor from reusing the code in other projects.
3. **Specify the obligation to deliver source code** – in the form of an archive or repository with access for you.
4. **Add a confidentiality provision** – an NDA or a separate section covering data and algorithm protection.
5. **Set acceptance criteria** – the code must be running, documented, and ready for support without extra charges from the contractor.

> **Definition:** An automation is a process or tool that performs pre‑defined actions without constant human intervention, usually based on scripts or AI agents.
> **Definition:** A contractor is an external service provider engaged under a contract who is not a company employee.
> **Definition:** Proprietary code refers to the source code, scripts, configurations, and documentation whose rights belong to the contracting company.

> **How this works for us:** The corporate program format consists of four live 2‑hour sessions over two weeks plus a recorded video course for each participant. Each group includes up to 20 employees for a fixed price. The cost is 99,999 UAH for a group of up to 20 people; with a full group that works out to about 5,000 UAH per employee. The program delivers a minimum of three working automations on priority tasks defined by the company, with a money‑back guarantee. The code and the created automations remain the company's property; they run on the company's tools, with no ties to the contractor. https://course.aiadvisoryboard.me/corporate?utm_source=blog&utm_medium=article_body&utm_campaign=corporate

## FAQ
**Is it enough to state in the contract that the code is ours?**
Yes, but it's also important to obligate the contractor to deliver the full source code and documentation; otherwise the wording may not be enforceable in practice.

**Do I need a separate NDA if I already have an agreement about the code?**
Yes, an NDA protects confidential information (data, algorithms, business logic) that may not fall under the

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