One for the Lawyers (or wannabe lawyers with an opinion)

[poidda]

I have written a website (which I will never use/sell) and a large company is interested in implementing part of it into there existing system. We are in discussion as to which way it will be implemented. There's 2 options:

a) I just sell them the source code I have already written and they will deal with the mess. or b) They'll contract me to integrate it into their existing system.

Of course option a) is easiest and I'll make a quick buck without doing any extra work, but it's more the concept that is being bought here, and once another programmer sees what I have done, they will be able to replicate it relatively easy. So where do stand if I show them what I have done, and then they turn around and replicate it?

I'm actually leaning towards option b) at the moment as it is a large company and I know they have more opportunities down the track. This could also give me a chance go out on my own and set up a software house myself. That and the fact that they are willing to let me work from home.

So, what to do?

[miro]

License the concpet to them -seperately seek copyright/patent approval.

[3oneday]

The guy who thought of the 2ball putter was offered something similar.... a payout of $250,000.00 USD or $1 for every putter sold....

He took he cash, at last count over 2.5 million 2balls have been sold :)

[Bruce]

I'd follow Miro's advice as the first option.

Sell it and it's theirs to do with as they like, licence it for use and it is still yours.
You need to think about how much the IP is really worth to you and whether you think you can sell it again. You won't be able to licence it for the same amount as an outright sale.

[poidda]

I'd follow Miro's advice as the first option.

Sell it and it's theirs to do with as they like, licence it for use and it is still yours.
You need to think about how much the IP is really worth to you and whether you think you can sell it again. You won't be able to licence it for the same amount as an outright sale.

It can't be used "as is" within their application and will need modifications. This is more of an extension to what they already offer. If that was the case, they wouldn't even need to see the source code and I could just flog them the compiled version.
The IP is worth nothing to me. I wote it as I needed something to retrain in 12 months ago, and I always thought these gys could be interested in it. It will never be sold again, and these guys have the monopoly anyway.

[miro]

sell it then

[markTHEblake]

Look, sell it to them outright, it is a no brainer.

Just look at what happened between IBM and Microsoft as an example IBM wanted to buy the OS outright, and Bill wanted to license it them. IBM said that they knew that the money was in the hardware not the software, so the agreed to the lesser deal that Bill offered.

Dumbest decision ever made in corporate history, by Bill Gates, right?

[BrisVegas]

why can't you offer them both A & B? Sell them the rights to your product, but offer your services at fat contracting rates to integrate and support it down the track.