   Selling a small application
  (Note: this isn't game-related per-se, but it is related to the business and law of selling software which relates to this forum, I think; also, this post applies to the USA)Let's say I have a small, useful application running on the .NET platform that I would like to start selling for a low price ($5-$15).  That is all I have at the moment - the application itself.  I intend to build a simplistic website allowing you to purchase the software, download a trial version, view screenshots and features, and post to a small forum in case of feature requests or issues with the software.  The application is not any sort of critical software and therefore the purchasing process will be very simple - pay for a key which removes the time limit from the trial, transforming it into the full application.Now, the questions:1) Is there any sort of guide, article, or resource that describes the actual process of taking a piece of software that you wrote and selling it, including the various legal aspects?  I assume it's not as simple as just trading some money for an .exe file.2) What are the necessary steps to protect myself from legal/business issues assuming I successfully set up my small business and begin to sell the software?3) How do I protect the software itself, in legal terms?  (As for technical terms, I will use a simple key-based activation method, as previously stated.)4) What exactly are copyright and trademark, and how do they apply to this situation?5) Does any form of taxation come into play here?Thank you very much for your time.  I realize the questions are a little wide, so I would appreciate any sort of push in the right direction because I have absolutely zero experience in the business aspect of software.   
  1) There is no definitive guide because it differs so much from case to case depending on country, state etc. There are plenty of helpful resources, government sites and blogs you can read. Is a matter of searching reading, learning terminology and more searching.2) Differs by country. Standard concepts are probably partnerships, sole trader, and limited liability entities. The last one requires more paperwork but partitions you from business debts and stuff. Which one is appropriate to you depends on what your goal is. You can always start simple and switch as you grow.3) Don't bother. Focus on building a strong relationship with your customers. use metrics and mining to measure what to focus on. Get that book called roughly "how to measure anything".4) Copyright applies to stuff like books, software code, music. Trademark applies to things like logo and other branding stuff. Your characters can be trademarked, your source code copyrighted. Copyright is automatic. Trademarks cost to get, retain and defend. Although you can also argue some concept of informal trademarks if you been trading under a brand long enough.5) Yes. You will probably need to register to both local and national bodies. With the local for stupid things like paying taxes for doing business in your house or something. National for taxing on your profit. You usually have some months from after you start trading to register. There is usually a threshold below which you can fly below the radar, still pays to tell them even if you dont make enough to be taxed. Keep detailed accounts as you are taxed on profits so you want to write off as many things as business expenses as you can. If you are in a country that does VAT then you need to add that to your price and pay that if you are above a certain profit level. The benefit is you can claim back VAT on your purchases which adds up to a decent saving. Some would say get an accountant because they can tell you how to best get your money back. But maybe I am too much of a cheap socialist  but accountants are expensive and the taxes are there for a greater good (in theory), not for cheating. Get a couple books on accounting and financial reporting, good budgeting and payroll software and you're good for now at least. Later on dedicated accounts people may make more sense.Brief and hurried but I hope it helps. You will need to look into marketing too btw. Oh and I used to suggest targeting .NET 2 but .Net 4 client profile looks real good now.   ;  Just to be clear, this applies to the USA.  I did mention it in the OP but perhaps it was a little obscure (to the right of the beginning "note:").Quote:Original post by Daerax1) There is no definitive guide because it differs so much from case to case depending on country, state etc. There are plenty of helpful resources, government sites and blogs you can read. Is a matter of searching reading, learning terminology and more searching.Any specific sources or search terms?  I've previously searched, however I mostly land on blogs talking about how to maximize your amount of loyal customers, rather than the actual business aspect of it.Quote:2) Differs by country. Standard concepts are probably partnerships, sole trader, and limited liability entities. The last one requires more paperwork but partitions you from business debts and stuff. Which one is appropriate to you depends on what your goal is. You can always start simple and switch as you grow.Thanks for the terms, I'll look them up.Quote:3) Don't bother. Focus on building a strong relationship with your customers. use metrics and mining to measure what to focus on. Get that book called roughly "how to measure anything".Understood.Quote:4) Copyright applies to stuff like books, software code, music. Trademark applies to things like logo and other branding stuff. Your characters can be trademarked, your source code copyrighted. Copyright is automatic. Trademarks cost to get, retain and defend. Although you can also argue some concept of informal trademarks if you been trading under a brand long enough.Understood.Quote:5) Yes. You will probably need to register to both local and national bodies. With the local for stupid things like paying taxes for doing business in your house or something. National for taxing on your profit. You usually have some months from after you start trading to register. There is usually a threshold below which you can fly below the radar, still pays to tell them even if you dont make enough to be taxed.I see, thanks for the information.   ;Quote:Original post by nullsquared1) Is there any sort of guide, article, or resource that describes the actual process of taking a piece of software that you wrote and selling it, including the various legal aspects?  I assume it's not as simple as just trading some money for an .exe file.First read the old threads at indiegamer forums. Only when you have read old threads post your questions as many have already been answered. I would also suggest joining the ASP. It costs $100 a year so you need to be serious but the members are helpful and there is lots of info on designing web sites to sell software, payment processing systems and other issues regarding online software sales.Quote:2) What are the necessary steps to protect myself from legal/business issues assuming I successfully set up my small business and begin to sell the software?Find a lawyer, talk to him, find an accountant, talk to her, set up some form of business entity based on what they tell you.Quote:3) How do I protect the software itself, in legal terms?  (As for technical terms, I will use a simple key-based activation method, as previously stated.)Through the use of lawyers, copyright and trademarks.Quote:4) What exactly are copyright and trademark, and how do they apply to this situation?Read Trademarks andCopyrightQuote:5) Does any form of taxation come into play here?Yes. Your accountant will be able to advise you on what exactly.   ;  Since you're American, you can also make use of the Small Business Administration's help. sba.gov   ;  You may want to talk to a lawyer to include an End User License Agreement that states exactly what the user can or cannot do with the software.  Copyright protection exists at the moment of creation, but putting a notice on the software is a good idea.  The name of the application should avoid reference to existing software or companies as this may give rise to trademark conflicts.  If you are using open source tools in your application you need to make sure your application clearly sets forth any open source license terms.  You should also look into setting up an LLC or corp to run the website and sell the software in order insulate your personal assets from liability if the application goes onto create a computer virus that goes on to destroy western civilization.  Good luck!   ;Quote:Original post by Obscure I do not agree with your 2, 3 and 5. Perhaps you have seen some variation of the joke about needing an expert on explaining what the expert on topic A said before what was said can be understood? Societies over specialization and growing broad ignorance is something of a pet peeve of mine but unrelated. However, It is important that at this stage he takes a very hands on approach to learning the business side if he wishes to succeed. A large reasons many tech start ups fail is because the engineer(s) feel that the business and marketing side is beneath them, the boring unimportant part that can be outsourced and left for later. Couldn't be further from the truth. At this early stage lawyers and accountants are expensive and an unnecessary fixed cost. Do they pay for themselves in time? Well I argue that the time taken to become competent in basic business law and accounting and the reduction of real life naivety and general ignorance more than pay for themselves later on when the company is growing and it starts to make sense to have a dedicated accountant.But it need not be a lone effort. Most local bodies have sponsored entrepreneurial activities. There you can meet people, get motivation, shore up your holes and run stuff by like minded people. Sometimes they have lawyers and accountants free who will tell you some general stuff as a hook and ask you to book a proper meeting. Many of them also give a first consultation free, try a bunch. Use these in addition to reading to build your basic competence. There also usually good gov sponsored free workshops on how to set up your business, manage your finances, network and market. Networking and getting advisors is more important than a lawyer at this stage.As for using litigation to protect IP? Giant waste of money when technical measure themselves are pointless beyond a basic lock. Especially if you are not some rich company using it as a strategy to drain money, slow down a release or force your way into a patent sharing agreement. Much of the concepts, especially the patent system if you look at what is playing out in the media is massively broken and over stretched. Instead of wasting time fighting a losing battle, better to spend time on building a good relationship with paying customers.Oh and NYC is growing rapidly in its friendliness to tech startups. I bet there is a massive amount of resources you can tap on for free. Networking is key here.   ;  I think its more like, as Obscure is here as a representative of a professional business consultancy firm, it would be unprofessional and potentially damaging to say you'll be alright if you just read it all yourself. Same reason why people give the following disclaimer when they leave a comment. ----------Disclaimer: I-AM-NOT-A-LAWYER.You are probably also going to need to look into patents. Although copyright is automatic in a sense, I do recommend actually applying for one through the USPTO.And while I personally believe that it is good to have comprehensive knowledge of business law as it relates to you and the people you deal with, and accounting enough to keep track of your own accounts.I recommend looking into some sort of legal representation, and an accountant. While things generally go well, if they don't these people are more than worth the money. If you have zero knowledge of the business of software, and you are interested in jumping in before studying you are either going to need the money to hire the team to compensate, or get a partner who can complement your efforts.   ;  I have to agree that even if you don't need a full fledged law firm at your side when you start up (although it does obviously help), you should most definitely get an accountant and at least a preparatory session with a tax advisor or tax lawyer. It's easy to screw these things up if you're unexperienced. And the IRS (or equivalent in other countries) are like a hungry pack of wolves only waiting to rip you apart at the slightest hint of an inconsistency in your books.