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owning communication system and intellectual property rights
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Ken.
    I install NAPCO products. As I read the contract, I habitually fill in an arbitrary value of $400 for the Communication System, which by definition includes the associated programming of which I retain Intellilectual Property Rights??
    That is the general manner that I explain that line item to the client.
Carrying it a step further, with systems using only the integral digital dialer portion of the system for comms, all system programming inclusive of the communication portion is 'owned' by me? And subsequently during an account cancelation can be removed if I deem it a worthwhile action against client. 
    However, and the crux of my question; as of late I have been commissioning systems whereas the comms are either GSM and/or IP....physically separate modules from the main control that retain programming of their own (albeit not all of the neccessary programming required for monitoring to occur). Two part question: in this instance does the unaltered contract still retain my intellectual ownership of ALL programming? And, does the unaltered contract help me retain ownership of the physical communication device in cases where it is a physically separate module. 
    Going forward with my operations strategy, I would prefer to own the communication device as a means to minimize devaluation due to the attrition rate of my base over time. 
Peter L. Mason
Mason Alarms & Electrical, LLC
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Answer
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    You refer to the All in One Standard Form Agreements.  The latest updated version of the Agreements do not retain ownership of the Communication System.  That equipment is sold along with the rest of the system.  However any programming you do remains your Intellectual Property.
    For a long time we separated the Communication System and the alarm company retained ownership of that equipment.  We thought it would encourage a long term relationship with the subscriber and also help facilitate the deactivization of the communication and either require the subscriber to pay for the Communication System or aid in the removal of the Communicate System.  The contract called for the "agreed value" of the installed Communication System and the alarm company had the right to sell that equipment to the subscriber who defaulted under the contract.  
    Many alarm companies preferred to sell the Communication System along with the entire system.  One recurring reason was that the subscribers were focusing on this issue; they want to own the system.  So the Standard Form Agreements were updated to remove the alarm company retention of the Communication System.  If you still have that retention language in your contracts and you would like to update your contracts either go on line to order the new forms - www.alarmcontracts.com or call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for assistance and to see if you are entitled to any discount on the update.
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                                         Speaking Engagements
If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at (516) 747-6700 x 312.
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