Source code escrow is the safest. No funny business by customer on their server. This is well-accepted process, so no room for them drown you in detailed requests that chip away at it.
Bake this value in as part of the recurring maintenance & support charge. This is invoiced and paid monthly, so they can't stonewall annually. they pay for this automatically from cc or ach using APS or other vendor. Approach them with this as an obvious and standard way to do it; they likely don't have that much experience with it.
Define the M&S terms so that it really is M&S, not fixed-fee for unlimited customizations. Standard m&s really is 15-20% these days. You start at 20%.
Custom software is not cheap. They should know this by now. Call me if you wish.
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Jerry Norman
President, 90 Minds
Smartbridge Partners
512.419.1444 x112
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Original Message:
Sent: 09-10-2019 05:37
From: Doug Higgs
Subject: Source Code Escrow
"Keeping a copy of the source on their server as a non-exclusive license seems much easier, since you don't have to constantly replace it at the third party every time it changes. In either case, there is a cost to the customer for this arrangement.".
Any suggestions how much I should charge, and how to approach the customer?
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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
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Original Message:
Sent: 09-09-2019 19:09
From: John Hoyt
Subject: Source Code Escrow
If the primary reason for the source code is a contingency if you are no longer around, then escrow makes sense. Keeping a copy of the source on their server as a non-exclusive license seems much easier, since you don't have to constantly replace it at the third party every time it changes. In either case, there is a cost to the customer for this arrangement.
There is normally a monthly or annual charge for escrow. There are a number of them available. I saw one on-line that was $59 per month. EscrowTech caters to Fortune 500 companies. Their site - www.escrowtech.com - includes everything you would want to know about the subject and a very extensive price list.
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John Hoyt
Forming Solutions: john.hoyt@formingsolutions.com
Next Level Manufacturing Consulting Group: johnh@nextlevelMCG.com
Original Message:
Sent: 09-09-2019 18:45
From: Doug Higgs
Subject: Source Code Escrow
@John Hoyt. Currently the plan is to charge about $5000 for the program. The customer wants access to the source code presumably in case we are no longer around. How does a license for copyright agreement: Pay us for the work we did?, and 2. Give the customer access to the source code?
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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
Original Message:
Sent: 09-09-2019 18:22
From: John Hoyt
Subject: Source Code Escrow
Why not ask for a "license of copyright" providing the customer with the opportunity to use the source code without getting the full ownership? It should be a non-exclusive license, which costs less.
It isn't apparent why the customer wants the source code, but the primary reason for escrow is to release the source code to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement.
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John Hoyt
Forming Solutions: john.hoyt@formingsolutions.com
Next Level Manufacturing Consulting Group: johnh@nextlevelMCG.com