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[4d_rad] License permutations and how to evaluate them....

  • From: Steven Horst <shorst@xxxxxxxxxxxxxxxxx>
  • To: 4d_rad@xxxxxxxxxxxxx
  • Date: Thu, 2 Nov 2000 15:54:15 -0500
Here is a breakdown of ways to think about possible RAD licenses, 
broken down according to:

(1) how the license guarantees perpetual access to distribution 
rights at a known maximum price (for my money, these are features the 
license MUST have to be viable in this market).

(2) The sales terms of the license -- i.e., how and when 4D is payed

(3)  The nature of the schedule of fees (e.g., discounts for volume 
or low price, etc.)

For me, all of the consistent permutations generated out of the 
alternatives in these three categories are doable if the cost is 
right.  (Some permutations are impossible because inconsistent with 
one another.)

I think there are 46 consistent permutations.  For me, the most 
desirable is one-time fee/one-time fee/all-included.  To rate the 
permutations on a 10-scale, I would deduct points for each value I 
find less desirable.  E.g, OEM gets -4.  Then add up.  (Start with a 
10-scale, and deduct.  one-time option gets a perfect 10.)  My own 
values are in blue.  Perhaps some clever soul can devise a way of 
making these value-assignments into a survey so we could compare our 
valuations in a systemmatic way......



1. Distribution license for component assures continued access to 
ability to distribute developer product using component (Engine, 
Plug-in)
a. Fee set-up possibilities (alternatives):
i. One-time fee  0 OR
ii. Contract at purchase for right to distribute copies for 
price/copy as specified in fee schedule  -3 OR
iii. On an annual basis, developer may choose to keep previous fee 
schedule or a new one offered by 4D Inc -2 OR
iv. 4D Inc. may offer new fee schedule at any time, but developer can 
opt to retain previous fee schedule.  -2
b. Contingencies (all must be met for license to be acceptable)
i. 4D Inc. ceases to exist ý developer retains right to distribute 
product without owing royalties
ii. 4D Inc. sells 4th Dimension to a third party ý existing licensing 
terms shall be carried over to new owner
iii. 4D Inc. ceases to support product version ý developer retains 
right to distribute product without owing royalties

2. Sales terms of licenses (alternatives):
a. Pay-as-you-go  -1  OR
b. Pre-pay installments (e.g., for 1000 units), not time-limited (w. 
guarantee of right to purchase more at same terms as per item 1) -2 OR
c. Annual pre-pay (e.g., for 1000 units/this year), w. guarantee of 
right to purchase more at same terms as per Item 1.  -3
d. One-time-fee  0

3. Fee schedules (alternatives)
a. Constant royalty per unit  -3 OR
b. Table based on price of developer product -2  OR
c. Table based on volume of developer sales  -2  OR
d. Table based on price and volume -1  OR
e. All included in one price.  0
f. OEM  -4
=========================================================================
Steven Horst, Ph.D.
Founder, President and Chief Software Architect
IntelliGents, LLC -- Essential Software for the Academic Community

400 Plaza Middlesex #338
Middletown, CT  06457

mailto:shorst@xxxxxxxxxxxxxxxxx
http://www.intelli-gents.com

fax: 401-712-5542





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