exactly. i just finished creating an application for a doctor, but since it was done as part of my master's program, the school owns the code. this means that though the doctor may have aspirations of turning it into a million-dollar product, he can't without working out a deal with my university. i'd be very surprised if this guy's school doesn't have a similar policy regarding code written for its classes. i think it's likely that the contract the other person's lawyer dad drew up is moot--the school probably already owns all (or most) rights to the stuff.
