In this paper, the authors help to understand the difference between copyrights, patents and liability. The author, inventor or customer always confused about copyrights and patents. Both are used for protection of software. Patent is a property right granted by government to an inventor for a finite period of time whereas the copyrights protects the original work or expressions. Liability is defined as a wrongful act other than a violation of contract that injures another and for which the law imposes civil liability.