We are a consulting company and when we deliver the software to our clients the deliverables are divided into 2 parts:
a) client business specific soft which is considered 'work for hire' with all possible rights assigned to the client yada yada yada
b) generic software which remains ours but the clients gets a license to use it in its business. The current terms for the license are as follows:
We grant to Customer a perpetual, irrevocable, limited,
non-exclusive, non-transferable, worldwide, royalty-free license, without the
right to grant sub-licenses (except that Customer may grant sub-licenses to its
affiliates and/or subsidiaries), to use the Type B Deliverables in furtherance
of Customer's Business.
The client we talk to right now has 2 issues with it:
1) He objects to the word 'limited' in there and asks "what exactly does the 'limited' here means?" and wants to remove it.
2) Does this licensing limit him in any way to sell or merge his company?