joined:Feb 16, 2007
My company has built a business around a custom CMS plug in that we wrote ourselves. We invested more than one person-year in coding for this project.
Besides using the software ourselves, we also make it available as SAAS. While we've talked to several potential customers, there are no solid contracts yet. Since we've only used it internally until now, we haven't registered our copyright or really explored any possibility for patenting its features.
We were approached by a (presumably larger) company that would like to host the software on their own servers, and that potentially has the in-house capability to further customize and develop the application. Their intended use as stated would probably not cause a conflict of interest.
However, our application consists of code that is compiled at run time. Installing it on another server would require us to hand over the sources, and the initial publication would trigger the need for copyright registration.
What are the different aspects that I should consider in dealing with this opportunity? We have an NDA that we will ask them to sign prior to talking about specifics, but I'm concerned about what could happen once the code is transferred. One of the ideas I'm considering is to offer them to purchase it outright. What other options are there?