Hi Marc

it depends on the Intellectual Property of the application and what your
client wants to do with it

If the application is a business fit specific to their requirements then
development rights on the source code are quite common. In this case I would
suggest 15 % - 20% surcharge on top (to a maximum depending on the project
size)and if they are planning to sell on the application to other clients a
royalty deal.

If the application is IP of your company then source code rights are rarer -
especially if your client wants to develop and sell on your tools this would
require specific contract terms - i.e. they could have the right to develop
the source code but you would retain rights to re-use it, market it and
develop it for other clients. This scenario should be checked by a lawyer
thoroughly. Costs would depend on the application, market, sensitivity etc.

Again for tools - if they are standard they would be thrown in (normally if
the client is supporting the end system themselves the tools would form part
of the hand over delivery), if they have been created by your selves then I
would suggest throwing them in but retaining IP rights.

-----Original Message-----
From: Marc Schipperheyn [mailto:[EMAIL PROTECTED]]
Sent: 06 August 2001 15:44
To: Spectra-Talk
Subject: Selling source rights (slightly OT)


Hi all,

I was just wondering what a reasonable price/percentage would be on top of a
regular development price if a customer wants to buy all rights to the
source code we created for them, including any standard tools we have
created/included in the system? Or do you guys consider that to be part of
the deal?

Kind regards,

Marc Schipperheyn
<theFactor.e>

Premium Partner for Macromedia

The future is technological, but it will not be a world of gray steel
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