HACKER Q&A
📣 barreltitor

Is it ok to start a business based off of a previous job for a client?


I'm a contract developer. I previously built software for an e-commerce client which solves a specific customer-service problem for their company only. However, I've been thinking about it and I think the solution (that they came up with, and I implemented) is generally applicable to the rest of the field and I think I can build a (small) business around it.

My client owns the copyright to the software I wrote for them, so I obviously would not reuse any of that code for the new business. I would rewrite everything, which I would've done anyways because the original could've been better. Other than avoiding copyright infringement, is there anything i need to worry about?

There's nothing patentable or a trade-secret-able about the application... any software engineer who saw the interface and played around with it could conceivably implement the system. I do have a NDA with the client, but it is a general mutual NDA not specific to any job or software.

One worry I have is my client might try to sue me saying that either they own the solution somehow, or that I'm committing copyright infringement. I would be using the same framework/language to re-implement it, so some parts would definitely look similar (like the boilerplate I write using editor snippets). The client is richer than I am so I would lose any lawsuit.

Are there other worries I should consider?


  👤 davismwfl Accepted Answer ✓
When I hady consulting group we did this only a handful of times. In almost every case we had the approval of the client. For those cases where we didn't it was a risk/reward ratio and the fact we felt the client missed seeing bigger picture we saw.

Only had one client get pissy over it and they threatened and sent a nasty letter but once they talked to an attorney who told them there was no non-compete and nothing they could do except try and prove we used the service code (we didn't of course) it went away. Just because someone is richer doesn't mean they want to waste $100k+ chasing a maybe win.

Also in at least a couple of cases clients came to us to buy our version. It is business and they weren't in the software business but into selling shit. So all they cared about was better tools to make them more profitable. And if we learned some stuff solving a problem for them that led to a better product later they were happy. I think this was somewhat unique to e-commerce though as I doubt a SaaS client would've felt that way. So make sure you consider that.

Make sure your contract has you in the clear and then go for it. Get a lawyers ok if you feel you should just remember they are in the no risk game generally and Entrepreneurship is all about calculated risk, so not many lawyers strong suit. I have ignored lawyers advice as much as followed it, just having it though gave me the risk profile I needed so it was worth the conversation.


👤 greenyoda
Talk to a lawyer. You wouldn't want to invest a lot of time and effort in this business if there was a significant risk of losing it all. And if you think the business could generate a significant amount of income, the cost of consulting a lawyer would be minimal compared to what you'd stand to lose if you were sued.

👤 pettycashstash2
Personally i would do it. It’s a calculated risk. You did your job and provided solution you were paid for.