I >have been offered a royalty on each copy sold.
First - congratulations - you have arrived!!

Second - there is a difference between royalties and ownership. It's easier to enforce a royalty when you own the copyright.

This is great - as long as the sale is more than a 10$ upgrade fee to a 120 users. This is the kind of stuff we'd all like to do but you need to make sure your taste is not in "pennies".

You could ask them what they anticipate your taste is - have them show you a business plan. Also - you should get an hour or so of a trusted attorney to help you understand the agreement. You efforts may be worth more than the initial offer.

Game for the copyright. It is a negotiation point. If they are hiring you via royalities to upgrade their service - tell them you need to own the project. If they want to own it - then they should offer you cash and / or equity.

I say $$$ upfront + equity + royalties (or salary) + support fees + indemnification. Get a lawyer. If you don't have an attorney and yo know an "honest" businessman that runs a successful enterprise, ask him/her to reccomend an attorney.

Has JVP passed the bar?<s>