Managing Intellectual Property is about using Intellectual Property Rights (IPRs) to protect an innovative concept in order to produce commercial advantage software. Software engineering can be viewed as IPR's from both ethical and legal perspectives. As systems are deployed into real-world use, legal issues of intellectual property rights and liability will play an increasing role in shaping the industry. This paper develops a conceptual framework for the legal issues affecting intellectual property rights and liability of software engineering products. IPR's protection legislation has carried on at a speed never before known, but in judicial practice, there are still a lot of issues worth exploring in software infringement claim.