Sytze,

The parts where they want to be sure they can use the software in any
way they see fit, understand every single detail about it, and get to
pick your brains in general as part of the deal, are basically
reasonable because that's what XX is willing to pay for, and so long as
the rate is fair and you don't lose anything, you're okay.

Then comes the word 'exclusive', which may give you trouble. The clause
is titled "Right of Use", but then in the middle of the wording is
buried the word "exclusive". That being the case, then the title should
properly be "Right of Exclusive Use", to be up front about it.

If programming Project Accounting Systems is one of your specialties,
this could be construed as a barrier to your being able to create
another rendition of a Project Accounting Systems for another company.
That's not good. Maybe better to clarify exactly what they are getting
exclusive rights to, i.e. the resultant copyrightable materials, as
opposed to what remains yours, such as the skill, experience, ideas and
general purpose libraries of code and doc that you bring to the project
which remain yours for use elsewhere. Or, just remove the word
'exclusive'.

It also sounds like XX wants you to create a saleable product under the
guise of an in-house application, without provision for your to earn
royalties. This should cause alarm because building a multi-user product
is vastly more expensive then a consulting contract for an in-house,
single-customer system.


Bill 

 
 
> I'm not sure if I should make this NF or OT
> 
> I'm about to sign a contract to develop a system
> This is one of the clauses and I'm throwing up
> PAS stands for Project Accounting System
> XX is the company I'm about to do the project for
> 
> 9.    Right of Use
> The Agent grants (or warrants that the owner of such rights 
> has expressly granted)  XX a perpetual, royalty-free, 
> unrestricted, irrevocable, exclusive right and license to 
> use, reproduce, modify, adapt, publish, display, transmit and 
> distribute the developed software (PAS) in any form and to 
> transfer the right of use to any third party. It also grants 
> XX the right to decompile, translate or isolate parts of the 
> developed software (PAS). In addition, the Agent agrees that 
> XX is free to use any ideas, documentation, concepts, 
> know-how or techniques that the Agent transmits to XX for any 
> purpose. Compensation for the right of use is covered by the 
> fee agreed for the development and implementation of the 
> software (PAS).
> 
> 
> 
> Can anyone suggest an alternative clause ?
> 
> -- 
> Sytze de Boer



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