What don't you understand about custom software: some company or institution
(or whatever) needs an application to fill a specific needs or, more
frequently, needs to configure/adapt existing applications so that they
accommodate these needs. Either it contracts developers to achieve the job
(the developers are employees; they receive paychecks) or it contracts
independent developers (usually organized in a company) to achieve the job.
In the first case, the software is not distributed at all (talking about
copyright does not make much sense). In the second cases, the customer
receives the application under the terms of a free software license. In
particular, it receives the source code of the software. In both ways, the
customer does not suffer from any unethical control/dependence to the
software developers. It can, for instance, choose to contract other
developers to fix bugs left by the former developers or add some more
features.
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