Transferring ownership of MC

[JAMMAN]

A company I used to work for might be going under. They owe me some money. Can one of their seats of Mastercam V8.1.1 be legally transfered to a private owner and how would one go about doing it?

[Guest CNC Apps Guy 1]

Yes, you can do this. You need to acquire the seat, then contact your reseller for pricing info. The price depends on the version that is being transferred. I have no idea what the pricing is. That's actually a good way to even things up if a company is going under (if you can afford to forgo the cash in favor of software for the future). This could make you an even more attractive candidate when you look for a new job.

 

JMHO

[gstephens]

Actually CNC Software has to approve the transfer BEFORE it happens, so you want to contact your reseller FIRST, then get the OK, then aquire the software, then pay the license transfer fee. Only after all of this has been done will you be a legal licensee.

[BernieT]

I have to disagree with James on this one, please contact your reseller first - not after you settle with the guy who owes you money. I checked on this very thing about a year ago and it was not so attractive. (especially to the seller)

 

He does not own the software, he only licenses it from CNC.

 

BerTau Arghh(gstevens types faster than me)

 

[ 08-15-2002, 01:03 PM: Message edited by: BerTau ]

[Guest CNC Apps Guy 1]

quote:

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Actually CNC Software has to approve the transfer BEFORE it happens...

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And how often does that happen? I'm thinking of a few comapnies that acquired the seat first then transferred and were able to still legitimize their seat, so it is possible to do it that way, but with that said, gstephens should know what the proper transfer protocal is and I would follow his advice.

[gcode]

I know of one case where this happened.

The buyer had to aquire 100% of the sellers assets

to legally transfer the MC license.

The buyer then upgrade the Level 1 seat to Level 3 with solids.

It ought to be easier to legally transfer a MC

license, but it isn't.

[McRae]

What are the accounting rules - Is software considered an Asset if you licence its use but do not own the code??

[Guest CNC Apps Guy 1]

Let's see, I'm going to an auction today (hypothetically) The machine shop computers are in one lot. Lo and behold, I see one with an MC HASP on it. I want to bid on it but it's 3:00pm on the West Coast (6:00pm Eastern Time). Darn, I guess I won't be able to get it because I can't call CNC Software first to OK the transaction. Uh, huh. There's not a person in here that would not jump on that opportunity and I doubt very seriously that CNC would not OK the transfer.

 

JM2C

[Roger Peterson]

Be wary, sim transfer is a very large percentage of the original cost of the seat. Depending on what you pay for the seat you can still save thousands on a mill level 3.

 

If a bear is using an unlicensed seat of mastercam in the woods and nobody is there to witness it...

 

Yes he would be breaking the law.

[JAMMAN]

Well. Thanks for the insight- and a big forum congrats for finally adding avatars. "WOO HOO!!!"

[n_tydingco]

It sounds like a lot of red tape to transfer the user license for MC. Why all the confusion about whether CNC Software HAS to approve the sale or transfer? If the original owner has already paid for the seat and needs to liquidate assets, the price has already been paid for that particular seat. So why not just a transfer fee and you're done with the transaction? The new owner of the seat would still have to pay for upgrades and the previous owner does not have access to the seat. Right?

 

Please enlighten me.

[Guest CNC Apps Guy 1]

Perhaps CNC Software should weigh in on this issue as to the hows and whys.

 

I do know for certain(as of last year) that the amount of the transfer fee is determined by the Version being transferred. You pay more vor a V6 seat than you woudl for a V9 or V8 seat.

[Charles Davis]

CNC's license transfer fee is quite liberal by industry standards. Most products just won't transfer a license under any circumstances.

 

From a dealers point of view: anytime a new company acquires Mastercam, we incur expenses.

 

Believe it or not, employees have mortgages and other pesty expenses, like food and clothing for their family.

 

What may seem like a simple tech call (I only need a small change to my post processor) is only doable because the dealer has the years of training and experience to make that change. You are not buying time as much as you are buying expertise.

 

Keep in mind that the cost of buying CAD/CAM software is small compared to the productivity you'll gain from a good product and support; or the loss you'll suffer from a bad product and support.

 

That's why there are distributors in the first place. Keeping them economically viable is worth the expense. In other words, free or cheap is not always the best bargain.

[n_tydingco]

Hi Charles,

 

If I read your post correctly, it sounds like you are saying that the costs incurred are in the form of support calls (FAQ's, How to..., etc.). I can understand that point of view, but, would it be fair to say that if a company (or private party) were allowed to purchase or acquire the Mastercam software but have to pay a fee to the local reseller for (any) support?

 

It also sounds like we're talking about a license that is only valid for the original licensee and any license agreements/contracts become null and void in the event (say) the business ceases to exist.

[Roger Peterson]

I'm getting a strange feeling that not everyone read the license agreement on the initial startup after installing mastercam V9, V8... myself included. I do agree with Charles, with most software you don't have the option to relicense, regardless of "moneys".

[KMaynard]

OK so .... How much of this relicensing fee actual hurts the software co. I mean tp say under James auction idea if a person were to have bought the seat and not paid a transfer fee (which by the way sounds expensive) does that seat now become a pirated seat?. And if so how much of a percentage of the "lost" revenues is due to this.. I'm sure this has to lend itself to piracy in some form ...

[gcode]

Legally it probably is a pirated seat, but I can't

see any court in the land convicting anyone of piracy in those conditions. The really bad part about buying a seat like that is it is not upgradeable. Three or four years from now it will

be completely obsolete.

[cadcam]

quote:

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does that seat now become a pirated seat?.

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No not really but the problem is stated like Gcode said you will not be supported in any way and will not be able to upgrade.

 

So what will happen is down the road you will upgrade many years later and it will cost you more.

 

[ 08-19-2002, 09:52 AM: Message edited by: cadcam ]

[iowajim62]

So if I read this thread right.

It would be a bad idea to buy a seat

of MC V6 from a lady who has closed

her little shop? Sounds like I would

be better off buying V9 Entry.

Jim

[Guest CNC Apps Guy 1]

Jim,

 

Yes you are correct. It would be wiser (and probably chaeper) to purchase the new seat in that case.

 

JMHO

[gstephens]

gcode wrote:

 

quote:

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Legally it probably is a pirated seat, but I can't see any court in the land convicting anyone of piracy in those conditions.

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Leagally it is a "pirated" seat, in that it is un-licensed. The license is ONLY good for the original owner unless CNC approves the transfer (Does antbody actually ever read the license agreements they agree to? ). Software is such a weird thing. Somebody earlier asked about accounting and assets. Yes it is considered an asset for tax/accounting purposes because if the company is sold as a WHOLE it will be transferred, however it is not sellable on its own.

 

As far a a court "convicting" someone of piracy...that would imply that it was a criminal offense. Currently the cases are almost always civil issues (which is why it is so difficult and costly to stop piracy).

 

OK...enough ranting (for now )

[McRae]

If it is an asset then the value of the asset will depreciate over time, and any upgrades to the software can and should be used as the depreciation charges (There you guys go, I have just cost justified all upgrades for those who work for bean counters!). If it is not a tangable asset and readilly converted into cash if sold (as prohibited in a licence agreemnet), then how can it be considered as such? Guess I should have worked for Enron, then I could see clearly.

[Guest CNC Apps Guy 1]

quote:

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Guess I should have worked for Enron, then I could see clearly.

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Yeah, or Arthur Andersen!!!!! LOL!!!!

[Jack Mitchell]

MfgEng,

 

Actually, here in Ontario Canada, any software purchase is a 100% write-off; At least that’s what my accountant says, and he is not anywhere near the inexpensive side.

The only time that software is not expensed is when it is sold to other companies or individuals, much like Mastercam is. If you sell software, then you have tangible goods or assets that are taxable. The sale of software is considered gross sales; the unsold software becomes an asset. Assets are not a desirable thing to have at tax time.

 

Hardware, on the other hand is depreciated at 20% against the declining balance.

This in English terms means that it takes about seven years to depreciate a computer that is totally redundant in about two years. What you gain in the short term equates to the rape you get in the long term.

 

I know of one seat of Mastercam V4 that was sold to a machine shop in Brantford. The 50 year old enterprise that went out of business was basically across the road from Flowserve, this business currently sells truck caps and trailers.

The machine shop that bought it balked at the upgrade costs and never pursued utilizing the software. Basically, they bought it cheap and never used it, they still do code the old fashion way.

 

In my opinion, I don’t see a gain in purchasing somebody else’s software – there is a licensing agreement that cannot be bought, sold, or traded without the consent of the rightful owner, whoever the legal owner is, they will somehow get you for at least 80% of the cost anyway.

 

Regards, Jack