>>>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
>>
>>It sounds good to me. You might also consider talking about a "maintenance fee".
>
>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.

I'd call it a license fee.
In effect, you are leasing the software, not selling it.