4 Replies - 6487 Views - Last Post: 19 June 2011 - 08:37 PM

#1 Sethro117  Icon User is offline

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Source Code Rights

Posted 20 May 2011 - 01:57 AM

I'm currently negotiating a project developing a Medical CRM. I'm curious how others calculate their costs to sell executables only compared to full source code. So far I'm doing potential resell value because I definitely feel should the company choose to sell the software a nice profit could be made. I'm also calculating future upgrades or new features in which the company may choose another developer if I'm unavailable which could also hurt future profits from this application.

Any tips yall have for negotiating things like this? This is a really big project and I want to try and not get the short end of the stick.

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Replies To: Source Code Rights

#2 Martyr2  Icon User is offline

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Re: Source Code Rights

Posted 20 May 2011 - 03:16 PM

I guess it depends on what you want to do with your business. If you are interested in getting into the development side of things, sell them the binaries at a price you would sell it to any other user with perhaps a bulk discount if they buy a certain number. This also means of course that they will look to you for upgrades, support, complaints etc.

If you are not going to be interested in keeping up on the project and want to move on to other things, sell them the source code for a nice chunk of change probably based on what you think they can do with it. If they are a huge fortune 500 company who might start round 1 with deploying it on 10,000 machines then obviously price it 10,000 licenses x 3 + whatever you think they will deploy for round 2, 3 etc.

A third route you could do is say "Look, I will sell you the source for X dollars but would like a 5% royalty on all copies of this you sell to others".

My best advice, figure out what they want to do with it. If they are looking to spread it company wide, get an idea of how big that company is and charge accordingly. If they are going to grow with it, take that into account.

In the end, it really is up to you and your attachment to the product. If you are going to sell source, make sure you are ok with departing with it. You know if it is any good, it most likely will fall into unintended hands either way.

Hope this helps you find some sort of a valuation on it. :)
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#3 jimblumberg  Icon User is online

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Re: Source Code Rights

Posted 20 May 2011 - 08:02 PM

If you are developing new software for a particular company, to their specifications, insure that your ownership of the source code, and right to distribute the program, is specified clearly in your development agreement.

Jim
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#4 g-weebens  Icon User is offline

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Re: Source Code Rights

Posted 08 June 2011 - 10:05 PM

Take the licensing into consideration. Where does the code come from?
If it contains GPL code, you have to follow the version license.
If BSD, the same situation as above.
Any external source you use must be stated.


And what happens when you no longer support that product? Are you going to subtly pressure the users into buying a new version?

Have you thought about opening the code up for others to help improve it?
So, people will get charged twice- once for the application and once for the source code- and then charged a fee for support.
And what will you do when you find your code doesn't work on very machine? It will be interesting to see, especially if you're working with limited exposure to other systems and architectures.
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#5 Sethro117  Icon User is offline

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Re: Source Code Rights

Posted 19 June 2011 - 08:37 PM

No external code is used, all mine. I offer free support for the software including training, and any new features the company asks for which will be negotiated for a price. If I didnt give a feature they asked for or a bug comes up that needs to be fixed, no charge. I never said I had planned on selling this to other companies or even wanting anyone else to have it which is why I originally asked how much to charge for the source code? If they have the source code, its theirs , they bought itand I'm no longer contractually eligible should another company buy it from them. I dont have to support it if they sell it.

It's a web based CRM specifically developed for them, so if they sell it and find their customers cant use it, thats their problem, not mine.
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