>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


Is it an annual license (meaning if they don't pay then they are no longer authorized to use the software)? If so, then "annual license fee" is appropriate.

If it's a the cost of ongoing maintenance / support (which you'll provide if they pay, but if they don't pay then they can continue to use the software afterward as it is/was when last received), then it should be "annual support fee".

And of course, no post of mine would be complete without the suggestion:
Since the product is now already written, and because the nature of the digital world automatically means that once you build one you've actually built infinity copies as well, then you should offer everyone the product and source code for free, and then accept donations, charging for support only when it's needed by someone.

Software is not like tangible things. It should not be treated the same way. One labor + materials in tangible things means one product, one use. But one labor applied to digital things means one product, infinite use. The ability to copy endlessly, and not consume the original, makes it possible and different from the tangible world.

The realities of the digital world should be recognized for what they are, and then employed, not hindered, by artificial constraints. The gain to mankind is far greater by sharing, not hoarding, by freely giving, not demanding lest people be shut out. Better lives for human beings is what we're trying to grow ... not personal profits. And if any of us have the ability to make someone else's life better through our knowledge and talents ... it's why we were given that knowledge and those talents in the first place -- to help other people, and as many as we can.