"Licensing" of Already Delivered Software?

Matterama asks: "My partner and I are treading on thin ice. We delivered six microprocessor controllers with source code libraries to a customer, under a written agreement to negotiate the license for that code from us once they got it working with their system. That time is upon us, and we realize that we do not know how to go about this (yep, we're pathetic). They want to buy 1000 units, and we are not setup to be a Microsoft (nor do we want to be). If I'm going to get a good, simple answer that puts money in our pockets for our work, it will be here. Can Slashdot recommend solutions or sites with solutions?"

Re:Simple answer

[Glonoinha]

Legal / financial / technical advice on Slashdot : good, accurate, free (pick one.)

Re:Try this?

[Glonoinha]

Here's a better way to get paid, OP : next meeting with the business folks, bring a chessboard and a pocket full of pennies. Set down the chessboard and put the pennies next to it - tell them the first license costs one penny and put a penny on the first square on the chessboard. Tell them the license for the second copy is two pennies and put two pennies on the next square on the chessboard. Tell them for each additional copy just double the previous amount, and put four pennies on the next square to reinforce the concept while explaining that those four pennies just paid for license number three.

If they go for it ... send me 10%. That ought to be enough to buy me some nice toys, like maybe Brazil and Bermuda.

You don't have to be Microsoft..

[mr.scoot]

Just be SCO instead. Give the code to your customer. Then, sue IBM.

Slashdot?!?

[Anonymous Coward]

Ummm...wait a minute. You expect advise, from slashdot, about how to make money on software. You do realize that this place is full of socialists who think all software should be free, right? Good fucking luck. Go eat your ramen, plebeian.

Dare I even mention this..

[maskedbishounen]

Step 1: Develop Code
Step 2: Meet to negotiate license
Step 3: ????
Step 4: Profit!!!

Cost

[sql*kitten]

Figure out how much it has cost to develop/will cost to deliver, double that, there's your price. Pick a number based on the local market rate for embedded developers, and include every hour in your calculation, even time spent in the shower thinking about it. Even if you don't charge for them, you'll need the real number so you can estimate jobs in the future.

In fact, triple the number, then you can give your customer a big discount and they'll love you for it, and you'll still come out ahead.

Re:Try this?

[Prior Restraint]

If they go for it ... send me 10%.

Tut, tut. I shall ask for only 1% of the first license (rounded down: $0.00), 2% of second license (rounded down: $0.00), 4% of the third license (rounded down: $0.00),...

Clearly, my offer is much more generous than Glonoinha's, so I urge you to take me up on it.