Several years ago I created a dating web site. I received an email recently from somebody who wants to license the software that I created for a group that he represents. How should I go about responding to him in way of terms, costs, and operating agreements?
If you are going to allow him to install the code base on his server, I highly recommend using a software program to make your code illegible, such as Ioncube Encoder or Zend Guard.
As for the pricing, costs, etc. We can't discuss actual pricing on these forums. I'd suggest you Google the type of software and see what is comparable in the industry. If yours is feature rich, or enterprise level (i.e. it has been tested and can withstand a pounding, is capable of load balancing across multiple servers, etc.) you can probably charge a premium.
Same with terms, you should be able to check out some other software programs' terms. Don't copy theirs, but they should give you a good idea of the types of clauses you should include.
Of course, you should consult a lawyer because a 'terms & conditions' and a licensing agreement are contracts. To be absolutely safe you should consult with your attorney, but it doesn't hurt to have done your research beforehand (and might save time and money).