Hi Dmitry.

>1. How do you "enforce" the license?

There's a license file that's created when the user activates the application that contains a count of the number of users who can access the application. When users log in, the number of users currently in the system is compared to the license count and additional users are prevented from logging in.

>2. When a developer buys a copy of SQ report "viewer" (not sure if this is the right term) for a client, is it installed on the client PC or on the server?

Either. Stonefield Query works on a single computer, with reports either on that system or shared on a server, or can be installed on a server. It also works in Terminal Server (that's actually the way we use it internally for reporting against our accounting and CRM systems).

>3. When an end user creates custom reports can they store these reports on the shared drive so that other end users in the company can use them too?

Yes. When the user starts Query for the first time, they're asked where reports should be stored. They can later change their mind and move the reports folder somewhere else.

>4. Annual maintenance (of 25%). Who pays, client (end user) or developer? If the annual maintenance is not purchased, does the program (viewer and SDK) still work?

Typically the developer charges maintenance to the end user and then pays us. That way, the end-users don't know about us; they think it's something you built and they pay you for. This also gives you an opportunity to make money on maintenance. For example, suppose you buy a license from us for $150 and charge the client $400. When maintenance renewal is due, you collect $100 and pay us $37.50.

If maintenance isn't renewed, "normal" licenses continue to work (they just can't be upgraded to newer versions and there's no support) but the subscription licenses (where the user pays a fee per month or per year rather than upfront) stop working.

Doug