Selling IP rights to an iPhone app
dkokelley: 1. Should I sell the IP rights to my software?If you don't do this then what would you do? Are you planning on selling the app yourself once it's developed? If you were then you need to evaluate both options and decide for yourself (or with more input from HN after more details are given) which is the best choice.2. What are the disadvantages of selling the IP rights?You can't make your app again, for yourself or anyone else. You might not even be able to use certain functions of code you've written for the app in any new apps you wish to create, depending on how the contract is written. Get a good lawyer for this.3. Why would they be after the IP of this software?To protect them from competition down the road. They want to make sure that you don't re-sell your app (or future derivatives of said app) to other companies while they are working on profiting with this app.4. If I do decide to sell the IP rights, how much should I charge for it? How is this calculated?This really depends on what the app is, what it's worth to you, what it's worth to them, and if an agreeable middle can be found. Try to guess how valuable this app is to them based on what they sell, and how well this app will add to their bottom line. There may also be lawyers that specialize in IP pricing.5. What is a good model for a working arrangement between my company and this other company?I would suggest having your company produce for their company as a client. Don't let them buy you. Let them buy your product. They may try to reel you in as a contractor or even employee. Just remember to operate with them as a representative of your company. This keeps your options open down the road.6. It was suggested to me that I sell the IP rights, then have a contract stipulating the price of each feature they want built. Is this a good idea?Well, the less ambiguity in a contract the better. I don't have any information about your app or the company, so I can't judge them. I would probably negotiate with them, saying: you can buy this unfinished app as is, with no support, and then hire me as a consultant if you need help finishing it, or you could buy this app with future developments built in to the contract price. Make sure that it is cheaper for them to spend more now, than to just buy the minimum.Goodluck! I hope that helped!