How does everyone handle source code?

[Redeye44us]

I am working on a bid for a project in which the client would like to own the license to the software as well as the source code. I am used to working on inhouse projects and have little experience with working for clients outside of the workplace. Is it normal for the client to retain all rights to the software? If so, how would this affect the cost of the project, knowing that I would not be able to resell it to other clients in the future? Any ideas would be appreciated.

Thanks,

[Hack]

I am working on a bid for a project in which the client would like to own the license to the software as well as the source code. I am used to working on inhouse projects and have little experience with working for clients outside of the workplace. Is it normal for the client to retain all rights to the software? If so, how would this affect the cost of the project, knowing that I would not be able to resell it to other clients in the future? Any ideas would be appreciated.

Thanks,

I'm a commerical developer and we market products targeted a large insurance companies (we do RiskManagement software).

We retain all rights to all source code. They pay for the compiled product only. I would have to talk to our Sales department to get specific information, but it seems logical to me that if a customer wanted the source code as well, then they are definately going to pay dearly for it. Once they have the source code, they don't need you anymore, so you need to make your money up front.

It is my experience that it is not normal for clients to have the source code, but it is also not unheard of. It just costs them more.

[techgnome]

Having done it both ways, it really depends on how you write the contract/agreement. It also depends on what the client wants too. Some do want the source code, others don't really care. Either way, make sure it is spelled out clearly in the agreement and that both sides understand what it means.

-tg

[Shuja Ali]

I have worked with a company which used to sell products and the ones where we used to do projects for different companies. In the first one we used to sell the package and not the source code. However in the second one, almost all the projects that I have done, we did transfer the source code to the client after finishing the development process.

Well some clients are very keen in getting the source code because they don't want anyone else to control their business (like anytime they want any modification to be done, they will have to come back to the same company (monopoly is what we call it)). Some customers do have plans of having an IS department which will finally take care of all the software applications that are being used. So if you give them anything compiled that department will be useless.

As already posted, the costs involved in giving a compiled one are less as compared to when we provide the source code itself. Here we loose the ownership of the product itself.

So you will have to reach to an agreement as to how you are going to charge your client. But yes there are people who will want the source code too.

[Redeye44us]

Thanks for the info everybody. This will get me heading in the right direction!

[szlamany]

We also do not "give" our source code to our customers.

But some of the more savy ones do demand a copy of source to be held in escrow to protect themselves in the situation where we no longer support it.

We basically grant a licence to use our product. We specifically indicate that they cannot redistribute it or become a "service bureau" to other clients using our product.

We also require annual maintenance/support payments to retain a relationship with us. For that they get all bugs fixed and all government mandates changes for no additional costs.

Most of my clients require constant changes and enhancments - so the relationship is usually a long term one (I've got customers that have been with me since the mid-1980's - from days of mainframes all the way to VB/MS SQL today).

With MS SQL it's much more difficult to protect code - as STORED PROCEDURES are stored in the DB as text. This does bother us, but a carefully worded contract will protect against intrusions into the standard product code.

We do allow our customers to develop there own SPROCS for info display and reporting - we do not tie there hands in a way that requires them to always use us for minor work.