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I need a bit of advice from those who have released software products.

Discussion in 'General Business' started by itsme, Jun 22, 2006.

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  1. #1
    I am going to be completing a software product (desktop app, not server side) for release this summer. It's nothing big/special/unique but I've got a few concerns and a couple of questions I'd like to ask... and I know there are a considerable number of people here that have gone through this process before. :)

    #1. Register a LLC or not?

    I'm a Canadian living abroad and registering a US LLC (Delaware) is not a problem, but it does create a few added expenses and inconveniences... Should I still do it? Any advice from non-US citizens on this? How about the banking issue?

    #2. Legal issues? Are there any?

    Aside from the standard terms of use and liability statement, is there anything I should take care of BEFORE I start selling the software? Is a simple TOS stating that I accept NO responsibility whatsoever for losses/damages caused by using the software enough?

    I'd really appreciate any info or personal experiences you've had to help me know what to expect and what to avoid.

    This would be a great help to me. I also expect to release a few other small apps after my first one gets going so your advice will certainly shorten my learning curve.

    Please feel free to PM me if you'd like to keep it private, I've got no problems with that.

    Cheers,
    Pete.
     
    itsme, Jun 22, 2006 IP
  2. sarahk

    sarahk iTamer Staff

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    #2
    Definately get a company, and better still have a trust that owns the company. Degrees of separation is important. We have our legal entities in NZ but sell up to the USA. So far so good. Touch wood!

    You may not think there is any chance to be sued but if someone is using your software, there's a power surge and they lose everything you'll have a battle on your hands proving the loss of all that other data wasn't caused by a "nasty" in your program.

    We sell our software through our own site and also through RegNow but payment processing is expensive and cumbersome. There are some cool options out there these days. Consider if you need to be able to handle multiple currencies - it adds cost.

    Consider how you are going to support your program. A common problem we have is people downloading upgrades and they just plain don't work - if you don't run the upgrade after downloading it. These user issues take time to resolve.

    Consider how you are going to stop pirating - but be prepared for a certain volume to be lost to pirating. You'll get a percentage of these back later when they decide they want an upgrade or they need support.

    Good luck - it's a big job but very rewarding :)
     
    sarahk, Jun 22, 2006 IP
    itsme likes this.
  3. itsme

    itsme Well-Known Member

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    #3
    Great points, thanks a lot.

    I guess the big thing is protecting yourself from lawsuits...

    Piracy is a fact of life unfortunately. I'm not sure how much time/money should be invested in anti-piracy stuff. Too much and the software is less profitable and buggy, too little (or none) and it's too easy to pirate. :(

    Anyhow, thanks again for the input.

    Everyone who has something to add, please do.

    P.
     
    itsme, Jun 22, 2006 IP
  4. sarahk

    sarahk iTamer Staff

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    #4
    Consider your target market.

    If your product has mass appeal then
    * you're more likely to have a user capable of cracking it
    * the cracker will have more reason to

    If your product is aimed at a niche of less tech-savvy users then
    * they are more likely to be happy to pay (if the price is right)
    * smaller market for crackers to profit from
    * less likely to search for the crack in the first place

    As for lawyers, we use a local guy. We don't patent or do anything like that. Mostly we fly below the radar of anyone out to cause problems.
     
    sarahk, Jun 22, 2006 IP
  5. itsme

    itsme Well-Known Member

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    #5
    That's the best strategy!

    To be honest, that is my main concern. I want to make sure I'm protecting myself from full/direct liability. There are a lot of stupid people that are only too happy to blame their problems on others' software/services.

    As for the users and piracy, I will be targeting mostly webmasters and web-savvy folks. I think the best way to prevent piracy is to force the software to log into a server and verify the reg code/machine id... but this can be a pain in the butt for the user (say his connection is down?).

    On the other hand, most of what I want to do will be internet related apps so that shouldn't be a problem... they will also be cheap so I don't see the major appeal in pirating cheap software. :)

    Anyhow, thanks again.
     
    itsme, Jun 22, 2006 IP