Microware, Inc., a commercial software firm, has expressed interest in purchasing a license to market FORMATS, an interactive computer program we've developed in-house. It is essential that we act promptly because one of the two programmers who developed FORMATS has already left us and the other will be leaving in two months. No one else in the firm can develop the program for the commercial market. As a result, we may both lose a useful tool and miss the opportunity to sell the program, since Microware has indicated it will not purchase the program unless we provide training.
There are two ways to sell FORMATS to Microware: The company can either agree to let Microware market FORMATS in exchange for royalties, or it can sell the rights to Microware for a one-time fee. I recommend the second option because the paperwork will be completed and tax problems resolved all at one time.
Microware and our remaining programmers have tentatively agreed both on the training schedule and on the one-time licensing fee. I will call you to set up an appoint.
