# TEL603: Intellectual Property Ownership
    https://www.telosready.com/skills/TEL603?v=1
    Explains the types of IP Telos manages on behalf of clients, who owns each type, licensing obligations, and client responsibilities upon cancellation. Use when discussing IP ownership, handover, or licence compliance.
    
    ## Instructions
    # Intellectual Property Ownership
    
    ## Core principle
    
    The client owns their IP. Telos manages it on their behalf, but ownership — and the responsibilities that come with it — rests with the client.
    
    ---
    
    ## The four types of client IP
    
    ### 1. Blueprint
    The blueprint is the client's core business documentation — a structured record of their domain, concepts, and application architecture. It is maintained within the Telos Platform and can be exported at any time as markdown files into a Git repository. The client owns the blueprint in full (see TEL103 §5).
    
    ### 2. Skills
    Skills capture the client's business knowledge and processes in reusable, AI-consumable form. They are stored in the Skill Book application, whose terms of service confirm that clients own their own data. Skills can be exported as markdown files at any time.
    
    ### 3. Source code
    Source code is the most complex IP category. It is split into four parts:
    
    | Component | Ownership | Notes |
    |---|---|---|
    | **Open source** | Various (per licence) | Telos ensures all open source is correctly licensed and avoids GPL-style licences that would force the entire codebase into the public domain |
    | **Commercial licences** | Third-party vendors | Paid for by Telos via monthly consumption on behalf of the client. If the client cancels their Telos agreement, they must procure these licences directly to continue operating the software |
    | **Base components** | Telos | Reusable code Telos has developed independently and may use across multiple applications. A perpetual, non-exclusive, worldwide licence is granted to the client for use within their application (see TEL103 §6.4) |
    | **Client-specific code** | Client | Code created specifically for the client. This is where the client's core competitive IP typically resides. Fully owned by the client upon payment of all applicable charges (see TEL103 §6.2) |
    
    ### 4. Data
    Client data belongs to the client. Where the client's own terms and conditions state that data belongs to their end users, Telos manages that data as a custodian — on behalf of the beneficial owner — not as an owner.
    
    ---
    
    ## IP handover
    
    All four categories of IP can be handed over to the client at any point. Upon cancellation, Telos will transfer code, master keys, and the blueprint within the remaining credit balance. Additional disengagement services are quoted at standard rates (see TEL103 §11.5).
    
    Data and the blueprint are permanently deleted from Telos systems within 30 days of cancellation. Clients should export everything immediately upon cancellation (see TEL103 §11.4).
    
    ---
    
    ## Responsibilities of IP ownership
    
    Owning IP carries two ongoing responsibilities:
    
    **1. Licence compliance**
    The client must not infringe third-party IP or use others' IP without the correct licence. Telos actively manages licence compliance during the engagement — including careful selection of open source licences and management of commercial licence obligations. Telos also indemnifies the client against IP infringement claims arising from deliverables it creates (see TEL103 §7).
    
    **2. Maintenance**
    Source code requires ongoing maintenance — security vulnerabilities, dependency changes, and evolving standards all create obligations. During the Telos engagement, this is handled under BAU mode. If the client cancels, full maintenance responsibility transfers to them. The client becomes solely responsible for keeping their IP secure and up to date.
    
    ---
    
    ## After cancellation
    
    As per TEL103 §11, once the client ends their subscription with Telos, they take full ownership and full responsibility for all IP. Telos has no further obligation to maintain, secure, or support the application. The client should ensure they have the resources and licences in place to manage the IP before cancelling.
    
    
    ← Skills Directory
    TEL603

    Intellectual Property Ownership

    Explains the types of IP Telos manages on behalf of clients, who owns each type, licensing obligations, and client responsibilities upon cancellation. Use when discussing IP ownership, handover, or licence compliance.

    # Intellectual Property Ownership
    
    ## Core principle
    
    The client owns their IP. Telos manages it on their behalf, but ownership — and the responsibilities that come with it — rests with the client.
    
    ---
    
    ## The four types of client IP
    
    ### 1. Blueprint
    The blueprint is the client's core business documentation — a structured record of their domain, concepts, and application architecture. It is maintained within the Telos Platform and can be exported at any time as markdown files into a Git repository. The client owns the blueprint in full (see TEL103 §5).
    
    ### 2. Skills
    Skills capture the client's business knowledge and processes in reusable, AI-consumable form. They are stored in the Skill Book application, whose terms of service confirm that clients own their own data. Skills can be exported as markdown files at any time.
    
    ### 3. Source code
    Source code is the most complex IP category. It is split into four parts:
    
    | Component | Ownership | Notes |
    |---|---|---|
    | **Open source** | Various (per licence) | Telos ensures all open source is correctly licensed and avoids GPL-style licences that would force the entire codebase into the public domain |
    | **Commercial licences** | Third-party vendors | Paid for by Telos via monthly consumption on behalf of the client. If the client cancels their Telos agreement, they must procure these licences directly to continue operating the software |
    | **Base components** | Telos | Reusable code Telos has developed independently and may use across multiple applications. A perpetual, non-exclusive, worldwide licence is granted to the client for use within their application (see TEL103 §6.4) |
    | **Client-specific code** | Client | Code created specifically for the client. This is where the client's core competitive IP typically resides. Fully owned by the client upon payment of all applicable charges (see TEL103 §6.2) |
    
    ### 4. Data
    Client data belongs to the client. Where the client's own terms and conditions state that data belongs to their end users, Telos manages that data as a custodian — on behalf of the beneficial owner — not as an owner.
    
    ---
    
    ## IP handover
    
    All four categories of IP can be handed over to the client at any point. Upon cancellation, Telos will transfer code, master keys, and the blueprint within the remaining credit balance. Additional disengagement services are quoted at standard rates (see TEL103 §11.5).
    
    Data and the blueprint are permanently deleted from Telos systems within 30 days of cancellation. Clients should export everything immediately upon cancellation (see TEL103 §11.4).
    
    ---
    
    ## Responsibilities of IP ownership
    
    Owning IP carries two ongoing responsibilities:
    
    **1. Licence compliance**
    The client must not infringe third-party IP or use others' IP without the correct licence. Telos actively manages licence compliance during the engagement — including careful selection of open source licences and management of commercial licence obligations. Telos also indemnifies the client against IP infringement claims arising from deliverables it creates (see TEL103 §7).
    
    **2. Maintenance**
    Source code requires ongoing maintenance — security vulnerabilities, dependency changes, and evolving standards all create obligations. During the Telos engagement, this is handled under BAU mode. If the client cancels, full maintenance responsibility transfers to them. The client becomes solely responsible for keeping their IP secure and up to date.
    
    ---
    
    ## After cancellation
    
    As per TEL103 §11, once the client ends their subscription with Telos, they take full ownership and full responsibility for all IP. Telos has no further obligation to maintain, secure, or support the application. The client should ensure they have the resources and licences in place to manage the IP before cancelling.