"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?"

Well...

[addaon]

If you 'don't want to be a microsoft', I assume you mean you're willing to be a decent person about this. That can only work if the customer is also a decent person. If you think that, here's what you do.

First off, there are two distinct possibilities. Either they'll be a customer again in the future (in which case they have a vested interest in helping you out) or this was a one time thing. In either case, just ask them honestly what there budget for the project is. Do this /after/ explaining your expenses; that is, how much you want and why you want it, broken up (honestly) into sunk costs, future development, and the stuff for your pocket. Once they quote a budget, if it's reasonable, take 80% of it. If it's not reasonable, say so. That'll make them want to come back.

Can You Deliver 1000 Units?

[reallocate]

Licensing aside, can you actually deliver 1000 units to this customer within the timeframe specified by your contract? (You do have a contract?)

If you can't meet the contract's terms, the license won't be your real problem.

That said, use your head about the licensing terms. You have every right to construct a license that is in your best interests. That's not being "Microsoft", it's just not being stupid.

If your business future depends on your exclusive access to that code, you may already be in trouble, since you agreed to negotiate terms after the potential customer has their hands on it.

If you believe there's a lot of future profit to be made selling that code, then negotiate a license that allows you to do that and prevents this customer, and future customers, from selling or otherwise distributing the code. Yes, this is not in keeping with the spirit of open source, But, are you willing to trade the existence of your business or your future livelihood for the warm fuzzies you get releasing it as open source?

If the code has nothing at to do with your future business prospects, you might as well hand it out on street corners.

It's easy giving things away when your bank balance isn't at stake.

Re:Try this?

[gcaseye6677]

I hate to say it but, these guys are going to get fucked. There's no avoiding this. The company has their source code, and there's been no agreement for them to pay. Now is not the time when they can or should try to force a license agreement. The company most likely will pay something, but it won't be favorable to the authors of the software. They will have to take whatever they are offered and if they don't like it, what can they do? I doubt they can afford an attorney at this point. Chalk it up to a lesson learned, and never make the same mistake again, guys.