I am about to begin a contract job with a customer who asked me to provide the contract. I used the Qdos generic consultancy contract template (I let the customer know this is what I was doing) and changed some bits to make it relevant. But today they came back to me with a question about the IP and a particular clause:
Insofar as they do not vest automatically by operation of law or under this Agreement, the Consultancy holds legal title in these rights and inventions on trust for the Client.
What does this mean? I'm not looking for legal advice about the contract wording as I'm sure that would be out of scope for this site but I would like to understand why the IP may not automatically be transferred to the client or what sort of situations this clause would protect against.