I have no code written currently, and have only met with my adviser to have him sign off on his agreement to oversee the project. I'll probably go the route of getting the school to sign off on something saying, basically "I won't use your stuff, you don't have to do anything for me, just don't sue me later".

If they won't do that, I might have to change my project to use another web app-type idea that I consider less viable as a business but could teach me a lot about web development. I hope that's not the case, as currently I'd be earning 3 credits to build my dream project and if I can retain all IP I'd be golden.