Path: utzoo!attcan!uunet!snorkelwacker!apple!well!knoll
From: knoll@well.sf.ca.us (John Knoll)
Newsgroups: comp.sys.amiga
Subject: Re: Software publishing.
Message-ID: <20960@well.sf.ca.us>
Date: 5 Oct 90 07:41:38 GMT
References: <32077@nigel.ee.udel.edu>
Organization: Whole Earth 'Lectronic Link, Sausalito, CA
Lines: 34


I went through all of this about two years ago.  Definitely get a lawyer, the
legal fees are well spent.  I hired a law firm that specializes in software
contracts.  No matter how good your relationship with your publisher, the
first draft of the contract will be almost totally one sided, and will need
to be argued to make it fair. 

Watch out for:

What happens if the publisher doesn't bring it to market in a reasonable time?
what are your options?  Who owns the source code? 

Royalty rates vary from 5% up to 20%.  What kind of rate you can expect
depends
on the state of your product.  If the publisher must devote resources to
writing a manual and finishing the code, Q&A, etc., you will probably be
offered a royalty on the lower end.  Be suspicious of anyone who offers you
more than 20%.  What is motivating them to offer so much?

Ask yourself: What is this company's interest in your product?  How does it
fit into their product line?  Do they understand your product?

Do you get a royalty on a version ported to another platform?  Does your 
royalty change if you deliver the program late? By how much?  If you are not
involved in working on a version 2.0 of your product, how does your royalty
change?

Is your royalty based on wholesale units less returns (standard) or some
other count?  How are the royalties calculated?  Watch out for things like
"less fully burdened costs" in descriptions of royalty calculation. (this
allows them to make huge deductions from their revenue before royalty 
calculations are done)  Make them itemize!

Well, there's a few things to check.  Good luck!