Washington Revised Code Title 84. Property Taxes § 84.04.150. “Computer software” and related terms

(1) “Computer software” is a set of directions or instructions that exist in the form of machine-readable or human-readable code, is recorded on physical or electronic medium, and directs the operation of a computer system or other machinery or equipment. “Computer software” includes the associated documentation that describes the code and its use, operation, and maintenance and typically is delivered with the code to the user. “Computer software” does not include databases.

A “database” is text, data, or other information that may be accessed or managed with the aid of computer software but that does not itself have the capacity to direct the operation of a computer system or other machinery or equipment.

(2) “Custom computer software” is computer software that is designed for a single person's or a small group of persons' specific needs. “Custom computer software” includes modifications to canned computer software and can be developed in-house by the user, by outside developers, or by both.

A group of four or more persons is presumed not to be a small group of persons for the purposes of this subsection unless each of the persons is affiliated through common control and ownership. The department may by rule provide a definition of small group and affiliates consistent with this subsection.

For purposes of this subsection, “person” has the meaning given in RCW 82.04.030.

(3) “Canned computer software,” occasionally known as prewritten or standard software, is computer software that is designed for and distributed “as is” for multiple persons who can use it without modifying its code and that is not otherwise considered custom computer software.

(4) “Embedded software” is computer software that resides permanently on some internal memory device in a computer system or other machinery or equipment, that is not removable in the ordinary course of operation, and that is of a type necessary for the routine operation of the computer system or other machinery or equipment. “Embedded software” may be either canned or custom computer software.

(5) “Retained rights” are any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a computer software developer, author, inventor, publisher, licensor, sublicensor, or distributor.

(6) A “golden” or “master” copy of computer software is a copy of computer software from which a computer software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license.