When you enter into a software development agreement with a developer, you are hiring them to develop and design a new software customized to you or your company’s specifications. On the other hand, with a Software Purchase and Assignment Agreement, you can buy an existing software and all associated rights.
With the purchase of a software license, you simply purchased the right to use someone else’s software. That someone or party remains the owner of the software and the associated intellectual property, and most likely you will not be the only license holder. The owner of the software could also limit your license and allow you to use the software only for a specific purpose and amount of time. On the other hand, when you purchase a software, you are transferring the software and all its associated intellectual property rights from one party to another. After a successful purchase, you become the only owner of the software and you can do with it anything you want, including selling licenses or selling it on at a profit.
If you have conducted the transfer of the software and all of its associated intellectual property rights, only the current owner can be liable for any lawsuit. The original owner/developer will not be liable for any lawsuit that occurs after the transfer. That is why it is essential to save the Software Purchase Agreement so you can prove it, assuming that you are the previous owner.