Software litigation

Software litigation is a court or arbitration proceeding about software, such as a claim that a developer failed to deliver a working system, a dispute over licence fees or scope, a copyright or trade secret claim over code, or a dispute over ownership of software created by employees or contractors. Most are commercial contract disputes that turn on technical evidence.

How BC law treats it

Contract claims are governed by provincial law and heard in the Supreme Court of British Columbia, or by arbitration if the agreement provides; intellectual property claims may also be brought in the Federal Court. Expert evidence about the software is often decisive, and expert reports must meet the requirements of the Supreme Court Civil Rules.

What it means for your business

A well drafted development agreement with clear specifications and acceptance testing is the best protection against costly litigation.

Risks and common mistakes

Without written specifications and acceptance criteria, it can be very difficult to prove what the software was supposed to do.

For the full explanation, see our entry on Commercial dispute.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.