This article focuses on the legal rules of intellectual property rights (IPR) in networked e-learning. Its purpose is to act as an awareness-raising device about IPR, especially in the public-sector e-learning community in the UK, by describing the relevant aspects of IPR, providing legal guidance on IPR in e-learning, especially on the use of third-party materials, and, finally, persuading developers about the potential benefits of including IPR management in their project planning and management activities. Also, the authors discuss the IPR knowledge gap in e-learning in UK educational institutions. Licensing and agreements that cover the transfer of copyright from one owner to another are discussed. In the end, the authors recommend providing an educationally sound guide to networked learning within the higher education structure based on the legal issues that the present article intends to deal with for people who are going to enter the e-learning environment.