I have found that "people" don't like that "stop working" (perhaps the person who knew about it left, and the new person did not know about it - so you can expect an disturbing call sometimes in this situation), so I prefer to make it clear they will receive a "key" of some sort so they can continue to use the app uninterrupted "for the next license period." I know it sounds like splitting hairs, but people look at things different sometiems. About 30 days before the next license is do, I start giving an occasional (once the first two weeks, then a couple times the next two weeks) reminder within the program to remind them to renew the license so they can receive the new key. I also include a link for them to paypal me right then.

>>>I need to describe to a prospective customer that the product licensing requires annual license fees. Is "annual license fee" a good term to use in this context? Or you would suggest a different terminology?
>>>TIA
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>>It sounds good to me. You might also consider talking about a "maintenance fee".
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>There is actually a "support and maintenance fee." But I wanted to make sure that the prosective customer understands that if they do not pay the "annual license fee" the program will stop working.
>Thank you.