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Software Agreement Advice

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    #16
    RE: Software Agreement Advice

    Greg,

    During the conference, there was an evening meeting with developers on this very subject. It was quite interesting to say the least. One guideliine is to determine the number of reports that will be needed and allow 4 hours for each report and multiply that by your hourly rate which runs anywhere from $25 p/hr to $150 depending on the experience of the developer and the complexity of the app.

    Example: 5 reports X 4 Hours = 20 Hrs. X $35 = $700 for the App.

    kenn
    TYVM :) kenn

    Knowing what you can achieve will not become reality until you imagine and explore.

    Comment

      #17
      RE: Software Agreement Advice

      For those following this thread, I'm attaching an Example of a Software Licensing Agreement.

      If anyone sees anything "unusual" or "landmines" I'd appreciate your comments. Seems to me that if you need 10 pages of legalesse to "do the deal", its a warning of future legal battles.

      Tom

      Comment

        #18
        RE: Software Agreement Advice

        I'd be concerned about paragraph 5.2.1. Although I would expect to respond to phone calls in less than 4 hours in most cases, there are times when I might be out of town for awhile or meeting with another customer and working on an emergency situation. (E-mails could take even longer if I was away from my office for any period of time.)

        I would prefer to have a 24 hour limit with the understanding that this would only occur in rare circumstances.

        Comment

          #19
          RE: Software Agreement Advice

          Tom,

          I'm watching with interest.

          -- tom

          Comment

            #20
            RE: Software Agreement Advice

            Thanks Cal - I did highlight that.

            So in today's business world, it you want the sale, you play the game. If all customer's came to me with a legal document to sign before purchasing, I'd be trying to manage my business according to 50 different legal agreements.

            I'd need a database to keep it all straight! Then problems would soon be coming through attorney's rather than a simple call to my help line.

            Even if I included legal fees in reviewing the legal documents prior to signing, this may just be the beginning of legal fees. I would need to include this in my cost of doing business. Plus marketing fees.. what's left for the developer!

            There must be other models of doing business. Or has this evolved to be the best. I know I can always say NO. And they are using my software now and really like it. The way all this originally came up was because of their concern about having access to my Source Code should I get hit by a bus. I'll see what they really think is important in this "boiler-plate".

            Thanks for listening

            Tom

            Comment

              #21
              RE: Software Agreement Advice

              Tom,

              I recommend you locate an attorney with experience in these matters and that you schedule a couple of hours conference time with him or her. Consider it continuing education.

              In connection with the draft or model agreement you posted, I'd caution you to specifically discuss

              1) choice of laws issues;
              2) attorney fee reimbursement clauses (in the event of litigation); and
              3) default and liability clauses.

              If you agree to specific performance and liability standards in a contract, I'd be certain that you spell out each assumption upon which your commitment is based. i.e. compatible with which operating systems, networks, and hardware?

              I have only limited experience in this area, but find that the biggest difficulty is writing the specifications for what the customer is ordering and you are delivering. For example, expectations may differ on intangibles like how quickly the program should perform under full load (assuming you've already defined what 'full load' might mean).

              While the sample you posted has lots of boilerplate provisions that deal with a wide range of issues, it's not much help in nailing down the crucial elements of the 'deal'. What, exactly, is the customer buying, and what, exactly, are you promising to deliver?

              -- tom

              Comment

                #22
                RE: Software Agreement Advice

                Thank You Tom-

                Should I expect to sign an "agreement" like this with each customer?

                Managing the contracts themselves would become time-consuming and costly (renewal date, performance dates, legal review, etc.)

                I gladly give the software to organizations to use while deciding whether or not to purchase. So they know the product. But I guess they get nervous when they decide to standardize on one software throughout their various sites of operation. AND it seems particularly troublesome to this agency that I am an independent developer.

                I wonder if ALPHA Software, Inc. could offer some backup to independent developers customers in that they could offer some sort of insurance package that would ensure customers of products developed in Alpha that they could offer a "due diligence of service" or continuity of development, access to Source Code or ...

                Just thinking out-loud.

                Thanks again

                Tom

                Comment

                  #23
                  RE: Software Agreement Advice

                  Tom,

                  Being the 'sole source' for a needed service has advantages and disadvantages. You can cover their concern about business continuation with a software escrow arrangement.

                  As for dealing with a small shop for vital services, you might take this occasion to remind them that because you're small they will receive the attention they deserve and are expecting. They will be one of your biggest clients, and will be treated accordingly.

                  -- tom

                  Comment

                    #24
                    RE: Software Agreement Advice

                    Thanks Tom & all who responded.

                    With all your support and knowledge - I don't feel like such a "small shop", or maybe I should say proudly that I am a SMALL SHOP.

                    Tom

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