who owns Flash website source files?

I recently designed/developed a website using Macromedia Flash for a client. I have been paid for work and site is up and running. Client would now like to take my source files, go elsewhere and update the site themsleves, hire cheaper labor etc. for future expansion. No contract regarding source files exist. Do I have a right to charge client for source files? The client has no way to update the site without these files. The fact that this was never discussed or in contract, does it benefit me or the client?
All help and comments appreciated!

cheers!

If no contract exists, then it is up to the court to decide. You have to decide if it is worth the effort to go to court or not. Of course, if you ask pretty please maybe your client will pay you extra for the source, but you don't have much negotiation room as you are the one required to sue them. This is an excellent reason to have written contracts that spell everything out. I don't know anything about flash and am presuming it is like javascript, etc. where the source is required to execute on the client. If, on the other hand, the source is compiled somehow and you only delivered the compiled product (i.e., you never gave the source to the client) then the shoe is indeed on the other foot and they must negotiate with you to obtain the source since there is no prior agreement otherwise.

The source was compiled in a program (Macromedia Flash) and I delivered the complied product. The source files are in my possession. They cannot update the site without me giving them these files. There was a brief discussion shortly after the site was completed regarding them being able to update some text on a section of the site and I told them, at this time no, but I could set it up that way(which would involve billable time) if they wanted. They are claiming they cannot use the site without these files, but the site is currently online and in use. Don't I own the intellectual property rights to these files by default?

In this particular case, they are the ones that will have to sue you. Since you have the source in your posession and they have a working site and there is no contract demanding the delivery of the source (I trust they have paid for the work already completed), then they must negotiate for the source. I doubt that any court would find in their favor, but defending yourself will cost money and/or lost wages (if you choose to defend yourself), so you must weigh that if they decide they are going to get lawyers involved. I suggest you consider a non-transferable single-site license for the code, establish a reasonable price for it (since you presumably had the intention of follow on work, the source is certainly worth more than nothing, but since all you have to do is hand them a floppy (does anyone still use floppies?) the incremental cost to you is quite low) and offer them that agreement. If they insist that you owe them the source, ask them to provide the signed agreement stating that and hint that your price continues to go up as they continue to be childish about the situation. It ain't for nuthin that business types want everything in writing, doanchano.

You did work for hire. The work belongs to the person that hired you unless you both signed something that explicitly stated otherwise. (Intellectual Property Wise). But like other people said, maybe you never promised the source so that's where legal advice can really be handy. The bottom line is what's written on the contract. If there is no contract stipulation, it's all a legal blur. The onus is on the party that has an issue to prove their case usually.

IMO You were contracted to provide a working component, unless explicitly stated otherwise

again IMO the IPR is irrefutably yours if the client had nothing to do with how you arrived at the design and implementation stage. That is did the client give you a specific brief of what they wanted the flash component to do, and is it in writing. At the very worst you have a significant portion of the IPR in relation to the actual source code. IPR can relate individually to each component within a project; design, code, even documentation

I worked in a Software House and the contract with the developers didn't explicitly state that the IPR was vested in the company, so the company had to buy the IPR from the developers albeit for a nominal amount. That's under Irish Law however.

Dunno how this works out under your own legal situation, as in what jurisdiction you fall under
HTH
--Ax