app development copyright compensation etc.

[andyk]

Hi,
I was approached to develop an access app for a company,
and initially believed it was to be used internally. As I
talked more to the client, it became clear that aside from
using it internally, they want to sell it to similar
companies. Initially I was thinking of what I would charge
on a per hour basis for the project, but that was before I
heard of their bigger plans for the project. Based on
their selling of my program, I have been thinking of a
50/50 deal, on any sales, after they recover their initial
costs to me, for the software.
I'd like to hear from professionals about their experiences
and views on licensing, copyright, assignment of rights,
compensation, etc. Any views on how seasoned professionals
would handle a situation like this would be greatly
appreciated.
Thanks,
Andy

 

[Arvin Meyer]

I only do custom work, but those of my colleagues who work hourly generally
get nothing for royalties, unless they work at a reduced rate. The largest
percentage I've ever heard of for a royalty is 33 1/3%. Remember, the
company you sell to has to spend for marketing and support.
--
Arvin Meyer, MCP, MVP
Microsoft Access
Free Access Downloads
http://www.datastrat.com
http://www.mvps.org/access

 

[andyk]

Hi Arvin,
I was going to let them take any selling costs off the top,
then split the net 50/50. But I could go 33 1/3 gross, or
50/50 net.
I'm not an employee, but a consultant, and was doing it at
a reduced rate for time and materials, because the client
was crying poor, which is fine, until I found out that they
want to take my program done at a reduced rate, and sell it.
When you say you do custom work, do your clients use your
program, solely, or do they try to sell it? In the case
where you find out they want to sell one of your custom
programs what would you do?
Any insight greatly appreciated!
Thanks,
Andy

 

[Arvin Meyer]

Most of my work is done for other consultants. I ask for no royalties, and
yes they do resell it. I only discount rate for quantity of hours and speed
of payment, not because they cry poverty. Some of the work I do is for
companies that use it internally. One project I am working on will be
resold, but I'll need to customize it for each buyer. I'll get paid for the
customizations. Some of my work is done through a broker and he owns some
licenses, and I own others. My agreement with him is that I won't compete
with him by going directly to clients. Since he pays me, and he's
responsible, that works out fine. No risk.

Don't go by me, though. I'm not your average developer. Nor am I even an
average person (just ask the other MVPs here who know me <g>)

If the client wants to sell it, remind them that they've only bought a
license to use it, not sell it. (If that's in fact, the agreement you've
signed) You really need to look at your agreement, and perhaps discuss it
with a lawyer or an agent.
--
Arvin Meyer, MCP, MVP
Microsoft Access
Free Access Downloads
http://www.datastrat.com
http://www.mvps.org/access

 

[Tony Toews]

Don't go by me, though. I'm not your average developer. Nor am I even an
average person (just ask the other MVPs here who know me <g>)

<snort> Yup, Arvin is .. special. <smile>

Tony
--
Tony Toews, Microsoft Access MVP
Please respond only in the newsgroups so that others can
read the entire thread of messages.
Microsoft Access Links, Hints, Tips & Accounting Systems at
http://www.granite.ab.ca/accsmstr.htm

 

[Tony Toews]

I'm not an employee, but a consultant, and was doing it at
a reduced rate for time and materials, because the client
was crying poor, which is fine, until I found out that they
want to take my program done at a reduced rate, and sell it.

This sounds like they're rather unethical. How do you know they'll
give you accurate sales numbers and appropriate compensation?

Tony
--
Tony Toews, Microsoft Access MVP
Please respond only in the newsgroups so that others can
read the entire thread of messages.
Microsoft Access Links, Hints, Tips & Accounting Systems at
http://www.granite.ab.ca/accsmstr.htm

 

[andyk]

Hi Arvin,
We haven't signed anything, and I think they're under the
impression that they'll own it, by virtue of being the
"client". I haven't informed them that it's otherwise,
until I am able to come up with a percentage number that is
fair.
So you said a general rule is 33 1/3%, where a client pays
a developer to produce a program for resale?
On the plus side, they do pay invoices in a week or two,
but have always cried poor.
Any other advice appreciated,
Andy

 

[Guest]

Hi Tony,
I don't think they're unethical as much as uninformed, as
they think that by virtue of being the "client" they own
the work, not me.
As far as tracking clients, initially it will be setup on a
win2k terminal server, as I asked about this in a newsgroup
a few months ago, and you were kind enough to share some
advice with me about it.
If the software is to be sold to clients for use on a
desktop or network without connection to our TS, I guess
I'll be back here asking for advice.
What is your experience in dealing with clients, royalties,
copyright assinments, etc.
I'd like to hear your thoughts on the situation!
Andy

 

[Douglas J. Steele]

<snort> Yup, Arvin is .. special. <smile>

And you're the prototypical developer yourself? <g, d & r>

 

[Tony Toews]

And you're the prototypical developer yourself? <g, d & r>

Never said I wasn't. <smile>

Tony
--
Tony Toews, Microsoft Access MVP
Please respond only in the newsgroups so that others can
read the entire thread of messages.
Microsoft Access Links, Hints, Tips & Accounting Systems at
http://www.granite.ab.ca/accsmstr.htm

 

[Larry Linson]

Don't go by me, though. I'm not

Never said I wasn't. <smile>

Yep, don't you remember the last time we were together... everybody looked
like Tony's twin?

Or, was I seeing double and more, by that time? <G>

 

[Charlie]

Andy,
The agreement should clarify ownership of code and "ideas" as well as "non
compete" and "non disclosure" agreements. For example you both might agree
that the code belongs 100% to the client but that you are free to use "ideas"
to develop and market your own version.
Charlie

 

[Páll Rasmussen]

Andy,
The agreement should clarify ownership of code and "ideas" as well as "non
compete" and "non disclosure" agreements. For example you both might agree
that the code belongs 100% to the client but that you are free to use "ideas"
to develop and market your own version.
Charlie