On 04/22/2011 01:08 AM, Mike Copeland wrote:
> For several years, I've had an arrangement with a friend, as I've been
> developing an application with the intention of marketing it when finished.
> (FYI, it's an inventory control, POS, retail app.) My friend has a retail
> business that is a perfect "target" for the application.
>
> Here is my understanding of our arrangement.
>   From the beginning, he has served as a test site, putting up with
> bugs, occasional (rare) lost data, and the inconvenience that comes with
> using a program that is under development. In the end, he will get free use
> of the complete application for his business.
>
> What I get from the arrangement is obvious. Free guinea pig beta testing
> in a real-time real-life environment, along with feedback on design and ideas.
>
> Not a single $ has ever exchanged hands for the software.
> To date, there has been no written agreement.
> (Yeah, bad.)
>
> Until recently, all was well...except the development was slower than he
> would like.
>
> A while back, my friend took on a biz partner who is now 50/50 co-owner of
> his retail business. The new co-owner and I do not "jive" well. Neither of us
> would unzip if the other was on fire, if you get my drift.
>
> The Dilemma
> Due to the above and other changes, the friend now says he wants to
>
> a) pay me a monthly amount to "help" speed up the progress of development
> since I've been doing other "paying" work and development on this application
> is "on the side" (since it has produced no income.) My plan for this payment
> was to invoice it as a monthly retainer amount for technical support of their
> computer systems (which I also do for an hourly charge already).
>
> But, I'm not sure this is a good idea...because he also said that he wants
> to...
>
> b) get a written document outlining our agreement, place the
> source code in escrow, and provide a written "remedy" ...in case
> "something happens".
>
> He said it's because the new partner is concerned what would happen if
> I were to die (or get mad at them and take my football and go home.)
>
> I felt much better about (a) above until the (b) stipulation was
> presented. The (b) makes me wonder what the partner's
> intentions are (in addition to some kind of self-preservation.)
>
> Above and beyond everything else, my goal is to retain 100% ownership
> and rights and control to the program. I would rather avoid taking the
> offered money than to create a situation that would lead to a legal battle
> for ownership rights, a battle which I can not fund, but they can.
>
> Thoughts? Advice? Warnings? Scoldings?
>
> Mike
>
>
I had a very similar situation with a customer.  Only add the fact that 
he thought he owned the software.  I was just writing it for him.  I 
wrote him a letter and told him, I owned the software because I wasn't 
going to have someone else supporting my software - especially if I was 
doing the work.  I have done the escrow thing for about 20 years and 
never had a problem with it.  And I told him he had to pay me for me to 
put him in front of other customers.

He was very happy to comply on all accounts and we are great friends and 
his application is awesome!

Lesson learned was to get everything in writing ahead of time!

Good luck.

Jeff

---------------

Jeff Johnson
[email protected]
(623) 582-0323

www.san-dc.com




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