How to License software?

Hello friends,

I have been working hard as usual in the plc field. I have been learning alot at my present place of employment. They supply me with all the tools and breakdowns that make my job so challenging.

Recently, I ran into an old friend who had started his own business and asked me if I could install a plc on a piece of equipment he
has developed. It is a simple device with about 8 inputs and 6 outputs.
He expects to sell about 4 of these to his customers.

Now that I am thinking of doing something, outside of my job scope, on my own time, it appears I need to purchase some software/liscensing.

How do I go about doing this?

My friend has a company.
He wants to build 4 machines.
They are all identical.
Each machine only needs 8 inputs and 6 outputs.

He will pay me to develop this and install it.
I have no intention of charging him a dime, as a matter of fact, I think I still owe this guy a hundred dollars...

My question relates to how to properly license this stuff.

Do I just buy a license and then program the plc's and work independently for his business?

Should his business be the one purchasing the software to develop and install the product, and just have me program it?

Should the individual businesses who are purchasing the software absorb the licensing costs?

Is it a combination of the above?

Thoughts, comments, suggestions always appreciated.

With that few I/O will a pico controller work?

http://www.ab.com/en/epub/catalogs/12762/2181376/2416247/1239730/3676481/index.html

The software download is free if the hardware will do the trick for you.

If this is all in the US, your friend needs to buy some credibility, so I suggest that you stick to AB product. It will cost a little more but you will sleep better.

Have him purchase the software and pay you 1$ for the work. This way he get the full intellectual property of the code and you end up giving him a big favor.

Be carefull about what you program for you will be responsible for any damage or injuries your code may cause. There is no free ride in this field.

Before you worry about anything else, I would worry about insurance. If someone gets hurt on these machines, you life could change drastically, if you don't have insurance.

This is what negotiations are all about.

How do you want to do business with your friend?

How does he want to do business with you?

What is the best way to do business with eachother?

These are questions you have to ask yourself.

You are changing the dynamic of your relationship, going from friends to business associates. Whatever you decide will change the dynamic of your relationship. Be careful and think it through.

Regarding your software dilema, there are products out there that offer a free programming package (ours included) that will be more than sufficient for your application.

I don't fully agree with Pierre's assessment in that he has implied that in order to establish credibility you need to use Allen Bradley. There are many companies that start today that don't use AB and have done just fine in their market. The focus should be on the product, and making it the best it can be.

You will want to choose vendors that you can work with and who offer a product that meets your needs, capabilities wise and financially affordable for your budget.

Regarding licensing:

Should you choose a product with free software, then the licensing of the tools becomes a non-issue.

Regarding the programs you develop for your friend's application, you will have to discuss if you are doing a contract job, whereby your friend agrees to pay you a set amount to develop a program, troubleshoot and debug it. If you go this route, he will probably require support after the project is complete. You will want to have some idea of what you will/can offer in support. Flat rate or hourly...you will have to decide and negotiate what is best for both of you.

It already appears from your post, that you are willing to concede many things due to your relationship and what he has done for you in the past. This is admirable. However, don't lose site of the fact you will be providing your friend with a service that will be beneficial to the both of you.

Should you decide to go with a product that requires purchased software, then you will have to determine what your relationship is with your friend's company. If you are an independent contractor that will do work on a project basis, not only for your friend but for other companies, then I would suggest you purchasing the software. If you will be working exclusively for your friend, then it might make sense that your friend purchase the software. Whoever purchases the software will be able to take a tax deduction for the purchase, so there is benefit to either party.

Regarding both parties absorbing the licensing costs will be challenging, because you typically by a single site license that can only be used on one computer. It will be difficult to split ownership of something like this. If you purchase two or more site licenses, then it will be easier to allocate costs.

As Pierre had mentioned regarding liability, you will want to discuss this with your friend as well. Make certain that you either have your own liability insurance or that your friend has it and that your work is covered under his policy. If it is a machine produced and sold by his company, then the insurance should cover the machine.

These are all things that you will want to discuss before you start. Eventhough you are friends, I would still put something down in writing.

Also keep in mind this could be a career path change for you. So, don't only look at the present scenario, but look into the future...where you want to be 5 or 10 years from now. Do some strategic planning for yourself. Dare to dream.

Hope this helps.

God Bless,

details

Hello,

I just heard from my friend. We talked about a few extra details.
Suddenly his "simple" project is way more complex than his original description. Why does this not suprise me?

Thanks so much to everyone for your input.

A few days ago I thought Mr. Lufts comments were awesome, but a bit extreme. Today, they are sinking in.

You are all wise beyond your years.

Thanks again