Re: Code ownership & cost
General Discussion 		Thread Starter: Eugene Rainey
Started: 02-02-2005 9:40
Replies: 6

Ireland .NET Developer Alliance :: Forums » Community » General Discussion » Re: Code ownership & cost
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   02 Feb 2005, 9:40
Eugene Rainey is not online. Last active: 24/03/2005 10:44:08 Eugene Rainey

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Derry
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Code ownership & cost
Hello Folks,

We are about to embark on a £15k .NET mobile job. On the original agreement it was stated that we, the company developing the software, would own the source code and that we'd supply the compiled code to the client.

Now the client wants to have ownership of the source code and wants to talk money. There is likely to be further development of the product at at later stage.

What's the deal here? Is there a standard formula for calculating cost of source code ownership? Does anyone have any experience of this?

Thanks

Eugene Rainey

  
   02 Feb 2005, 10:00
Paschal is not online. Last active: 25/03/2005 14:46:09 Paschal

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Re: Code ownership & cost
Eugene

Did you signed with your client a formal contract ? In this case it's surely negotiable at a high rate.

What are your client's motives to ask for the source code?

Paschal
 
    
   02 Feb 2005, 11:09
Eugene Rainey is not online. Last active: 24/03/2005 10:44:08 Eugene Rainey

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Derry
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Re: Code ownership & cost
Hello Paschal,

We haven't signed anything yet - the client is talking to his solicitor and we're in the process of drawing up a contract.

We drew up an initial proposal stating we would own the source code and supply only compiled code. We were happy enough with that as we reckoned they'll come back to us for future development and we don't generally sell source code.

Now the client's solicitor is saying he (the client) would need to own the code. He's forming a company based on the product we're developing so I suppose he's thinking he needs full intellectual property for future control of the company and product.

To complicate matters further, the client would be happy for us to take an equity stake as he realises he'll need a tech partner.

It's all very amicable so far and the client is eager to start. We're just not sure what the standard practice and costs are for source code and intellectual property.
 
Any advice or referrals would be greatly appreciated.

Thanks

Eugene
  
   02 Feb 2005, 12:30
Paschal is not online. Last active: 25/03/2005 14:46:09 Paschal

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Re: Code ownership & cost
OK I see. For me by default, it's just my opinion, the client owns the code by default.
Well if this now involve a solicitor, something more serious is happening there.
You should also have your solicitor in the matter. I think its seems to be the best advice I can give.
Your solicitor probably will give your transaction more professional.
Does it worth it? Well 15k is surely some money. At least you have to be sure to get some payment before starting anything.

Paschal
 
    
   02 Feb 2005, 12:40
Eugene Rainey is not online. Last active: 24/03/2005 10:44:08 Eugene Rainey

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Derry
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Re: Code ownership & cost

Paschal,

We'll be getting 25% up front so we have a bit of cover there. Our solicitor will be getting involved so we'll have some professional legal advice too.

Maybe an escrow agreement would be best. We're meeting the client tomorrow so I'll see how it goes.

Thanks for the replies!

Eugene


  
   24 Feb 2005, 10:25
websat is not online. Last active: 24/02/2005 15:05:02 websat
Re: Code ownership & cost
Hello Folks,

Reading your comments, you maybe have the solution I am looking for. I need to propose to one of my customers a software escrow agreement.

Do you have any idea of the companies taking care of software deposit arrangement?

Thanks in advance

Frederic
 
    
   25 Feb 2005, 10:02
Eugene Rainey is not online. Last active: 24/03/2005 10:44:08 Eugene Rainey

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Derry
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Re: Code ownership & cost
Frederic,

We have since come to an agreement with the client regarding the source code that doesn't involve escrow.

We were looking at using Intellect, a UK based company. More details at:

http://www.intellectuk.org/services/escrow/Escrow.asp

There are costs involved so it would be a good idea to shop around.

Eugene


  
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