Index: lams_central/src/java/org/lamsfoundation/lams/authoring/IObjectExtractor.java
===================================================================
diff -u -r053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc -r56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d
--- lams_central/src/java/org/lamsfoundation/lams/authoring/IObjectExtractor.java	(.../IObjectExtractor.java)	(revision 053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc)
+++ lams_central/src/java/org/lamsfoundation/lams/authoring/IObjectExtractor.java	(.../IObjectExtractor.java)	(revision 56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d)
@@ -35,7 +35,7 @@
 
 	public static final String OBJECT_EXTRACTOR_SPRING_BEANNAME = "ObjectExtractor";
 
-	public abstract LearningDesign extractSaveLearningDesign(Hashtable table, WorkspaceFolder workspaceFolder, User user)
+	public abstract LearningDesign extractSaveLearningDesign(Hashtable table, LearningDesign existingLearningDesign, WorkspaceFolder workspaceFolder, User user)
 			throws WDDXProcessorConversionException, ObjectExtractorException;
 
 	public void setMode(Integer mode);
Index: lams_central/src/java/org/lamsfoundation/lams/authoring/ObjectExtractor.java
===================================================================
diff -u -r053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc -r56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d
--- lams_central/src/java/org/lamsfoundation/lams/authoring/ObjectExtractor.java	(.../ObjectExtractor.java)	(revision 053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc)
+++ lams_central/src/java/org/lamsfoundation/lams/authoring/ObjectExtractor.java	(.../ObjectExtractor.java)	(revision 56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d)
@@ -293,14 +293,11 @@
 	/* (non-Javadoc)
 	 * @see org.lamsfoundation.lams.authoring.IObjectExtractor#extractSaveLearningDesign(java.util.Hashtable)
 	 */
-	public LearningDesign extractSaveLearningDesign(Hashtable table, WorkspaceFolder workspaceFolder, User user) throws WDDXProcessorConversionException, ObjectExtractorException {
+	public LearningDesign extractSaveLearningDesign(Hashtable table, LearningDesign existingLearningDesign, WorkspaceFolder workspaceFolder, User user) throws WDDXProcessorConversionException, ObjectExtractorException {
 
-		learningDesign = null;
+		// if the learningDesign already exists, update it,  otherwise create a new one.
+		learningDesign = existingLearningDesign!= null ? existingLearningDesign : new LearningDesign();
 	
-		Long learningDesignId = WDDXProcessor.convertToLong(table, "learningDesignID");
-		//if the learningDesignID is not null, load the existing LearningDesign object from the database, otherwise create a new one.
-		learningDesign = learningDesignId!= null ? learningDesignDAO.getLearningDesignById(learningDesignId) : new LearningDesign();
-	
 		// Check the copy type. Can only update it if it is COPY_TYPE_NONE (ie authoring copy)
 		Integer copyTypeID = WDDXProcessor.convertToInteger(table,WDDXTAGS.COPY_TYPE);
 		if ( copyTypeID == null ) {
Index: lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java
===================================================================
diff -u -r053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc -r56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d
--- lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java	(.../AuthoringService.java)	(revision 053f4adbf9e3b8f5eca3e67b4fba0350e65e78fc)
+++ lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java	(.../AuthoringService.java)	(revision 56f0a9dbc1b2eab52b3b798c891b4bb5794d4f0d)
@@ -1085,6 +1085,10 @@
 	 * It received a WDDX packet from flash, deserializes it
 	 * and then finally persists it to the database.
 	 * 
+	 * A user may update an existing learning design if they have user/owner rights to the 
+	 * folder or they are doing live edit. A user may create a new learning design only if they 
+	 * have user/owner rights to the folder.
+	 * 
 	 * Note: it does not validate the design - that must be done
 	 * separately.
 	 * 
@@ -1107,15 +1111,23 @@
 		}
 
 		WorkspaceFolder workspaceFolder = null;
+		boolean authorised = false;
 		if (workspaceFolderID != null )	{
-			if ( ! workspaceManagementService.isUserAuthorizedToModifyFolderContents(workspaceFolderID, userID) ) {
-				throw new UserException("User with user_id of " + userID +" is not authorized to store a design in this workspace folder "+workspaceFolderID);
-			}
 			workspaceFolder = (WorkspaceFolder)baseDAO.find(WorkspaceFolder.class,workspaceFolderID);
+			authorised = workspaceManagementService.isUserAuthorizedToModifyFolderContents(workspaceFolderID, userID);
 		}
+		
+		Long learningDesignId = WDDXProcessor.convertToLong(table, "learningDesignID");
+		LearningDesign existingLearningDesign = learningDesignId != null ? learningDesignDAO.getLearningDesignById(learningDesignId) : null;
+		if ( ! authorised && existingLearningDesign != null && Boolean.TRUE.equals(existingLearningDesign.getEditOverrideLock())) {
+			authorised = userID.equals(existingLearningDesign.getEditOverrideUser().getUserId()); 
+		}
+		if ( ! authorised ) {
+			throw new UserException("User with user_id of " + userID +" is not authorized to store a design in this workspace folder "+workspaceFolderID);
+		}
 
 		IObjectExtractor extractor = (IObjectExtractor) beanFactory.getBean(IObjectExtractor.OBJECT_EXTRACTOR_SPRING_BEANNAME);
-		LearningDesign design = extractor.extractSaveLearningDesign(table, workspaceFolder, user);	
+		LearningDesign design = extractor.extractSaveLearningDesign(table, existingLearningDesign, workspaceFolder, user);	
 		
 		if(extractor.getMode().intValue() == 1)
 			copyLearningDesignToolContent(design, design, design.getCopyTypeID());