Clarifying IP Ownership in a Crypto Wallet Project

When it comes to developing innovative fintech tools like a crypto wallet with biometric card integration, one of the most important legal areas to clarify early on is intellectual property (IP) ownership. Whether you’re the client funding the development or the developer building the tech, unclear IP rights can lead to costly disputes, stalled product launches, and lost commercial value.

In this blog post, we’ll walk through the key legal considerations for IP ownership in a crypto wallet project, especially those that involve custom hardware integration or plans for commercialization and white-labeling. If you’re working on a crypto startup or representing a fintech client, this guide is for you.

Table of Contents

Why IP Clarity Matters in Crypto Projects

Crypto wallet platforms often involve multiple components:

Mobile app interfaces and backend systems
Blockchain connectivity modules
Biometric authentication technology
Proprietary smart contracts or SDKs
Third-party vendor contributions

Each of these may be created by different people—and without a clear contract, it’s not always obvious who owns what. In a highly competitive and regulation-sensitive industry like crypto, failing to establish IP ownership from the start can lead to:

Disputes over reuse of code or features
Blocked commercialization paths
Delays in investor due diligence or licensing

Client vs. Developer: Who Owns the IP?

This is the central question of many crypto development projects. Here are two common scenarios:

1. Client Ownership (Assignment Model)

The client funds the development.
The contract includes an IP assignment clause transferring full ownership to the client upon delivery.
The developer may retain the right to use general know-how or non-specific tools (e.g., their coding framework).

This model is common when the crypto wallet is intended to be the client’s core business asset or when white-labeling or licensing is planned.

2. Developer Ownership with License to Client

The developer retains IP ownership.
The client gets a broad license to use the software commercially.
Licensing terms must be carefully defined: is it exclusive, sublicensable, perpetual?

This works when developers plan to reuse parts of the technology in other projects or maintain it as a proprietary platform.

Special Consideration: Biometric Hardware IP

When the wallet project includes biometric card integration (like fingerprint-scanning payment cards), IP rights over the firmware, authentication logic, or even physical design may also be at stake.

Some questions to consider:

Is the biometric technology built in-house or licensed from a third party?
Does the developer customize existing biometric modules, or create something new?
Who owns the resulting hardware-software integration?

These answers affect everything from patent filings to future product iterations.

What to Include in IP Clauses

Whether you’re assigning or licensing, your development agreement should include:

Clear Definitions:

What exactly is “Deliverables,” “Background IP,” “Foreground IP”?

Ownership Clauses:

Assignment: “All rights, title, and interest in Deliverables shall vest in the Client.”
License: “Developer grants Client a worldwide, irrevocable license to use the Deliverables for [defined purpose].”

Restrictions:

Can the developer reuse the code?
Can the client sublicense the platform?

White-Label Rights:

Can the platform be sold or branded by others under agreement?
Are there limitations on sectors, territories, or partners?

Commercialization Considerations

Crypto wallet projects often evolve into multi-party platforms or are spun off into separate businesses. To prepare for that:

Ensure your IP terms allow commercialization (e.g., through sublicensing or spin-offs).
Clarify if the client has exclusive rights to use the product in certain markets.
Discuss IP rights in case of mergers or investor funding.

Having flexibility here allows the client to monetize the platform through multiple channels: app stores, partnerships, SaaS models, or white-label resellers.

Lessons for Other Fintech Startups

Even if your product isn’t a crypto wallet, the same principles apply:

Clarify IP ownership and usage early.
Don’t rely on handshake agreements.
Don’t overlook hardware, SDKs, or open-source dependencies.
Anticipate commercialization or future partnerships.

Smart IP planning avoids future legal headaches and supports sustainable growth.

Conclusion

IP ownership is not just a legal technicality—it’s the foundation of your crypto wallet’s business model. Whether you’re a founder, investor, or developer, having a written agreement that clearly defines who owns what—and who can do what with it—can save your project months of delay and thousands in legal costs.

Be sure to work with a lawyer experienced in crypto projects and IP structuring to tailor your agreements to your platform’s future.