Ever Heard of a License Transfer Fee upon Acquisition? [closed] - licensing

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My employer was recently acquired by a much larger company. In the process of sorting out all the legal details around our licenses for our development software, we have learned that the vendor of our IDE charges a "nominal" fee of 25% of the cost of a new license to transfer our existing licenses to the new corporate name.
This struck me as absurd. I have not seen such a customer-unfriendly policy from any other vendor. Has anyone else seen this type of policy? Am I way off base in considering this unfriendly and abnormal?

Unfriendly? Yes. Abnormal? No. Its actually very common for tools with a hefty per-seat license fee to charge for a transfer after acquisition. I believe they do it because they can: the cost of transferring license is either overlooked during the M&A due diligence or is considered inconsequential compared to the rest.
The tool vendor justifies the fee because they now have one less potential customer, and the combined company will be paying a lower price per seat due to volume discounts.

I've heard of it before in regards to some high-end graphics software, but this was also back in the 1990's and only applied if you sold your license to someone else.
However, it does seem to be a bit odd to change 25% of a new license to just change the name on it. I'm not a lawyer, but isn't there some way that you could get around having to change the name on the software?

Things like this are quite common. It all depends on the agreement between the vendor and leasor. It's not limited to software either. Think about buying music, images etc. I have heard of some agreements where you can't transfer the license at all. You just have to buy a new copy. The thing that has to be remembered is that techinically when we buy a copy of a program, we don't "own" the copy, we just lease the use of it. It sucks at times, but that is the way it works.

I would say you are not, i have never seen a practice like that before.
edit : well i must be very lucky, seems that it is common. Very glad i have not run across this before :)

There have been cases where the tools (capital) a company has purchased is worth more than the company, and the company is purchased and gutted just to obtain those tools at a discount.
This is bad for the company, of course, but the tool vender especially doesn't want this to happen - they lose a potential full-price customer for software where there is no real competitor. Further, the company that originally purchased the tool doesn't mind the contract because it helps prevent acquisitions based only on getting the capital. (Corollary: If your company is negotiating out of such a contract, get ready to be purchased...)
For tools that are very, very expensive, this is not unheard of. Think 10's of thousands of dollars per seat, and you can see why this economy becomes reality. Further, sometimes tools are purchased for the company by a client (DoD) and they are actually a small company ( a few developers that won a nice contract) - if the client does not retain the license, then the company might go bust and the license sold for pennies on the dollar at an auction to pay creditors.
Etc, etc, etc. In short, very, very expensive licenses change the economic playground enough that very strange rules apply. Note that "expensive" may also mean scarce, as in the case of liquor licenses for restaurants, or otherwise difficult to get (Qualcomm might not want to sell a given company a license for their CDMA patents, but they may not be able to legally prevent that company from acquiring such a license through legal methods).
-Adam

I would have expected your new overlords to have been made aware of this as part of their takeover plans. Part of the process involves checking for exactly this kind of gotcha.
Sounds like they chose to ignore the information or did not check it out.

That sounds pretty harsh to me, but if you think about the amount of money that changes hands during acquisitions, it's probably one of those cases where your IDE vendor just gets paid without complaint most of the time, so they keep with the policy.
I can see why it shouldn't be completely free to transfer the license -- there is some (probably 'nominal') administrative work to do on the vendor's side, and they need to discourage people from transferring licenses all over the place when they really shouldn't be. But 25% seems awfully high for the amount of work and verification they need to do -- it seems like they could put some sort of cap on the license transfer fee, or have a fixed price.
It does seem like the kind of policy that would drive customers to a competitor, particularly one that does not have the same kind of draconian license transfer policy.

It seems that something like this could be negotiable. We have never though of "fees" as a hard nonnegotiable item. If they value your business I would bet they could discount the transfer fee. It certainly seems that some kind of fee is reasonable for administrative changes that are required. To me that should be a flat fee per license. The work required to change their database is the same no matter how much the license costs.

This is quite common. Unless you address this issue up front when you enter into a license you are at the mercy of the licensor when a transaction like you describe happens. The licensor may or may not have a policy to come along and charge a fee, but unless the matter is addressed in your license, they will have the legal ability to do so.
The reason is this: a license is a legal contract with a specific legal entity (your employer in this case) and grants no rights in the software to anyone else (they buyer company in your example). Now your employer could have insisted on a clause in the original agreement saying that the license could be freely transferred to a possible future buyer without fee, but without such a clause, the licensor can do what they wish. Including charging the 25% fee.
This is one reason that many companies have their licenses routinely reviewed by legal counsel who are knowledgeable about software licensing.

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How can I prevent my legitimate customers from Breaking my license? [closed]

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I have a commercial plug-in on top of Visual Studio.
My product is licensed per individual developer, so the developer may make copies on more than one computer, as long as the use of the product is by the same developer.
After a period of time I discovered that many of my customers purchase one developer license and distribute the product over all the team members (and it is not rare case).
I spent many hours (here in StackOverFlow and outside) searching on how to prevent this issue, but I found most of people talk about protecting per-machine license.
My question is how can I prevent my legitimate customers from illegally distribute my product over more machines if I can not restrict them to any number of machines?
Throw my search I get one solution, but I want to ask you if it is acceptable or not?
I can restrict the license per Windows user name, while the customer activate the product for the first time I record the windows username with the product serial number, so he can not run (or even reactivate) the product on any machine with another Window username.
If you purchase any product that licensed per-developer, is this approach is acceptable for you?? (or in the other side this policy may be reduce my sales?).
Best Regards,
You can use many forms of DRM to protect your product. Consider though that you will be hurting and annoying legal owners on occasion. If someone changed computers or reinstalled windows then he will not be able to install your product again. DRMs can also be broken and are usually never worth the time invested in them.
My advice is that you don't try to prevent piracy of your software, since you can't stop it. If you are aware of a specific client that abuses your license, send them a friendly but firm Email requesting they acquire legal licenses for all their copies. Failing that, you might want to pursue legal actions.
All in all, trying to fight software piracy is a lost cause. You might consider other types of licenses that make it easier for a company with multiple developers to acquire your plugin. If you give group discounts they are more likely to pay.
I guess it depends on how the plugin is used. If it's primarily used in an office environment where having computers set up in a windows domain is the de facto standard, then yes, it could be acceptable.
It could become a problem if the developers are used to being able to use the plugin at home on their home computer as well, since the username will probably not match.
Edit: You could perhaps set a limit of 2 usernames per user. That could solve the use-at-home problem.
I'd say trying to bind the license to the windows user name would be sufficient, and somewhat acceptable. In your case you likely don't have any protection against several machines/users/etc. using many copies of your license - making it trivial for several people to use it. Most legitimate people will buy the additional licenses if it becomes non-trivial to do otherwise, binding it to the login name provides easy incentive to get additional licenses.
Just keep in mind:
You can't protect against every way to circumvent licensing.
You don't need fancy license protection, you just need it to be easier
to get an additional license than it is to circumvent the licensing.
Don't make it hard to use a licensed product.
One caveat I have as a sole developer on some projects though, is stuff bound to just 1 machine (or perhaps user account) - I always need 1 additional license for my build server and/or my machine-at-home.
it is very annoying to have to pay for a license for that machine even if it's just me using it - so think about that. For your product, it'd mean I'd have to have at least 2 licenses - one for my work computer, one for my home cumputer (different users/domains).
Invent some kind of setting which everyone will want to have set their own way, and keep that setting value on your server, for a license. If it's the same programmer using the app from three different PCs, he'll have no complaints on that the setting is the same everywhere. (In fact, he'll like it). But different people have different tastes, and people will soon be tired of re-setting the option the way they like it only to later find it reset back to someone else's preference again. They'll think that maybe buying a cheap personal copy instead of going through all this crap is not a bad idea after all.
The more of user preferences you automatically move around, the better it is for a single user and the worse it is for cheaters.
Goerge, what you describe is pretty common in your industry. The battle is lost already. Small companies will not purchase as much license as they should, but bigger ones will eventually respect your licensing terms.
You must adapt your pricing strategy and take in consideration this fact.
Adding more protection will do the inverse, preventing you from getting new customers or keeping the existing ones.
Don't make it hard to use. I have seen bad results, like Blu-ray which almost failed because of so much DRM on them. Some people had to resort to Slysoft Any HD-DVD to play blu-ray because software player that was supposed to play Blu-ray wouldn't play the disc they bought.

How to get a customer to understand the importance of a qualified DBA?

I'm part of a software development company where we do custom developed applications for our clients.
Our software uses MS SQL Server and we have encountered some customers which do not have a DBA on staff to manage the databases or if they do, they lack the necessary knowledge to perform their job adequately.
We are in the process of drafting a contract with one of those customers to provide development services for new functionality on our software during the next year, where they have an amount of hours available for customization of our software.
Now they want us to include also a quote for database administration services and the problem is that they are including a clause that says that those services will be provided only when they request it.
My first reaction is that db administration is an ongoing process and not something that they can call us once a month to come for a day or two. I'm talking about a central 1TB+ MSSql Cluster and 100 branch offices with MSSql Workgroup edition.
My question is for any suggestions on how I could argue that there must be a fixed amount of hours every month for dba work and not only when their management thinks they need it (which I’m guessing would only be when they have a problem).
PS: Maybe this will be closed as not programming related. But I'm a programmer and I have this problem. My work is software development but i don't want to lose this client and the only solution I can think of is to find a way for the client to understand the scope so we can hire a qualified DBA to provide them with the service they require.
Edit: We are in a Latin American country with clients in the Spanish speaking region. My guess is that in more developed countries there is a culture that knows how delicate the situation is.
This is definitely one of those 'you can lead a horse to water, but you can't make them drink' situations.
My recommendation here would be to quote the DBA services as hourly, and make the rate high enough that you can outsource the work if you decide you want to. When (not if) the SQL servers start to have problems, the firm is on the hook.
I would also recommend that you include in your quote a non-optional 2 hour database technology review once per year. This is your opportunity to say 'You spent XXX on database maintenance this year, most of which was spent fighting fires that could have been easily avoided if you had just spent XXXX/4 and hired a DBA. We care about you as a customer, and we want you to save money, so we really recommend that you commit to using a DBA to perform periodic preventative maintenance'.
I would also recommend that you categorize any support requests as having root cause b/c of database maintenance vs other causes. This will let you put a nice pie chart in front of the customer during their annual review (which they are going to pay you to perform). It is critical to manage the perception so they don't think your code is causing the problems. You might even go so far as to share these metrics (db related issue vs non-db related issue) with them on a quarterly basis.
Sometimes people need to experience pain before they change. The key is to not be in between the hammer and their thumb as they learn the lesson, and hourly quoted work is one way of doing this.
As a side note, this sort of question is of great interest to a large number of developers. I'd say that this sort of thing could impact a programmer's quality of life more than any algorithm or library question ever could. Thanks for asking it!
No DBA on a system that size is a disaster waiting to happen. If they don't understand that, they are not qualified to run a database that size. I'd recommend that they talk to other companies with similar sized databases and have them ask them about their DBAs and what they do for them, and if they think they could survive without them.
Perhaps the link below from MS SQL Tips could give you some good talking points. But people who aren't technical wont respond to a technical explanation of the necessity of good DBA you are likley going to have to work toward proving the cost of bad DBA. Work out the worst case scenarios and see how they feel about them. If you can make it seem like a good financial move (and I think we all know it is) it will be an easy sell.
http://www.mssqltips.com/tip.asp?tip=1278

Why does software have EULA? [closed]

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This is the only product that I know that a consumer must agree to something that only lawyer can (something) understand. I'm sure car accidents kill more people each year than software accidents. But I don't sign anything like an EULA when I buy a car.
So why does software have EULA? Were there a bad accident that triggered the need for software companies to protect themselves? (and what was the first software that had EULA?)
[Update] Just to clear my point: I don't understand why software have EULA. No other product that I can think of does (not even gun)! So what makes software different that this product needs some sort of "liability limitations"?
By the way, Wikipedia says that "The legal status of shrink-wrap licenses in the US is somewhat unclear."
The difference is that you are purchasing a license to use software, not the software itself (which the software company still owns). The EULA stipulates the method with which you can use the software. Similar agreements are in place when you rent things (e.g. a home), lease equipment, etc.
An EULA is designed to be a contract that conveys or limits “usage” rights, hence the name End User Licensing Agreement. It has nothing more to do with a copyright than the mortgage loan contract that I have with my bank. That is why the legality of shrink-wrapped licenses is questionable. It is a contract that you do not get to read until after you purchase a product. It is clear from many responses here that the vast majority of people have not wrapped their heads around the idea the copyright does not extend to “usage” rights.
One responder wrote “Actually, the book is yours but the rights to the book are not. Just as in software, you purchased the physical media, but are bound by law on how you can use it.” Nothing could be farther from the truth. There is no law that restricts how you can use the book. Any restriction on usage would have to be agreed upon by you and the retailer as part of the sale.
Consider that in the absence of copyright, the copying and distribution of books would be perfectly legal. A book would be typical tangible property and nothing more. Copyright limits your ability to legally copy and distribute the content of the book. No additional agreement is necessary. Copyright in no way dictates how you can use your book and copyright law does not convey to the author the power to convey, limit, or negotiate “usage” rights. The only way that they can limit usage rights is through a separate contract that would have to be completed as part of the sale or rental.
There was some confusion regarding the GPL. The GPL is not an EULA. It is a copyright license that permits copying and distribution of the content so long as you comply with the restrictions of the license. In absence of the GPL (say you choose not to accept it), you can still use the software, but you are restricted from copying or distributing the software by Copyright Law.
EULA exist for various purposes. Companies that develop software want to negotiate a position that puts them at the least risk and gives them maximum leverage.
If a consumer receives software without any license, consider what they might consider their rights:
They may believe they can copy the software, as many times as they want.
They may consider re-selling the software, and still keeping a copy for them self.
They may believe the software must work perfectly, with zero bugs (as they understand a bug)
They may believe it is fully waranteed against any perceived defect, and try to return it, for a full refund, at any point in the future.
In short, the EULA disabuses consumers of these notions. It defines ownership and copyright of the software, limits on its use, distribution, features, and quality.
Now it is true that as lawyers get involved in the EULAs more and more, stranger and stranger provisions creep in, such as provisions that you cannot review the software on a blog, or you cannot bad-mouth the software to the press, or that the publisher owns content created with the software.
But fundamentally, the EULA is supposed to be about the producer and the consumer coming to an understanding of what is, and is not, an acceptable use of the software.
Actually, what is quite funny, in Germany EULAs are pretty much legally-non binding, since you only get to see them after the purchase, so for us the answer to your question is:
To intimidate the user from doing stuff the company does not want
There are basically three reasons for EULAs:
Software is much more copyable than any other product I can think of. It is almost never left on its distribution medium. That creates a huge temptation to, for example, buy one copy of Windows and install it on all of a company's thousand computers. Developers want to explicitly lay out how many computers the software may be installed on.
Software often has undetected problems. Even the best QA department never finds all the bugs in a software product. Developers know this and want to be legally covered.
Software can often be easy to take apart to discover a developer's trade secrets or other information the developer doesn't want others to know. Developers want to legally restrict this to protect their advantage over competitors.
Of course, there are sometimes other reasons for other terms. EULAs for Apple's Mac applications, for example, usually state that you can only install the software on an Apple-branded computer; this ensures that Apple's software (which is usually sold much cheaper than it would be from any other developer) increases sales of Apple hardware. The GNU GPL tries to ensure that the innovations in derivative software remain available to the community that developed the original. There are as many reasons as there are clauses.
It depends on the exact wording of the EULA. Often, it's written to reinforce existing laws, such as copyright, by directly informing the user that it's unlawful to copy the program. It also adds on other restrictions such as no reverse engineering, restricting the intellectual property.
Additional clauses may include "not to be used in nuclear projects" or similar. This is merely covering the developer's bases, as it is extremely unlikely that a nuclear system developer would use a non-realtime, non-approved system without extreme amounts of research.
A further clause could restrict certain classes of users, such as military or government, which the developer feels strongly against.
As for which software had the first EULA, I have no idea.
Cars and guns technically have something like a EULA... we just call them "licenses". You have to learn the limitations and rules of their operation, then take some tests and sign some papers.
Nobody has mentioned the obligations of the provider, which are often in the EULA too. If I make your software a critical piece of my corporate infrastructure and you go bust I want to be able to get my hands on the code so your failure doesn't precipitate mine.
As someone said, this is more akin to a rental agreement than a purchase agreement, which is why the analogy with a gun does not really apply.
For proprietary software, License tells about your right to use specific software copy and impossibility to re-sell it, also your and software authors rights and charges
For open source software, License also tells about your right and charge about source code (distribute, do not do that, do that with limitations)
When you use a gun at a firing range, don't you have to sign some type of release or waiver? The logic is similar.

Subscription based software: Does it work? [closed]

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A while back I worked with a software company that sold a specialized software product. Ever so often they would release a patch for free and a new version that would require an upgrade fee. This is typically how the software industry works.
After some time the company decided on a new strategy, Subscription based software. This turns out to be a way for the software company to charge a small, incremental fee for each "transaction" that is performed on their software. Under this model the patches and upgrades were included in the per/transaction fee and there was a 'true up' in the number of transactions every so often in order to collect their fees.
To me this seems like a better way to develop and sell software. The software company gets continual income stream, the customer doesn't have to worry about upgrade costs and such, and if the customer gets really big then your income stream grows with their growth.
The problem (and reason for this question) is that I don't see anyone doing that anymore. Is it because this model doesn't work? Have I taken an overly simplistic view of developing and selling software without seeing some of the negative sides of this model?
[EDIT] I am interested in the developers opinion on whether writing Subscription based software is a good way to develop software.
So this question is directed towards the professional developers who have worked on commercial applications: Can anyone speak with experience on this model and why it does/doesn't work?
I used to work for a company which moved from product license to subscription based model. Here are some observations about that:
Offer both product license and subscription models
In product license: user buys 'n' number of seats for their use.
In subscription models, customer buys your software for 'x' months time and 'y' people.
It will help you a lot if your company also develops 'consultants' who will work with your customers to get the software implementation etc at client site (any required installation, training etc)
In fact if you see services like GMail enterprise, Fogbuz etc they give different pricing options:
where you want the app hosted: your servers or their servers
you will be charged $x per number of people using the software
I think a subscription model (time based) will definitely work in the current times and in fact the cloud model helps towards such freedom in revenue models: for example, you can choose to 'subscribe' to a cloud database rather than purchasing a database server.
Yes it does. See salesforce.com for an example.
Red Hat seems to think it works. Buy a year of support get all the upgrades/etc/etc. Except they let you keep the product when the year is up (so.. I guess customers like that too =).
It's not exactly the same but basecamp from 37Signals is very succesful with a monthly fee basis, and FogBugz also uses the same model. The approach you're talking about here seems similar to the MircoPayment idea that was seen as a revenue earner in the early days on the web. I'm not sure if anyone succesfully made money from that model, I'm sure a lot of VC was spent trying.
[Edit] I think this an exellent way for small ISVs to run their businesses. The combination of SAAS and subscription is a great way of getting revenue quickly. There are a number of advantages
1) Continuous revenue
2) Small or zero initial payment, brings customers in, beats that credit card price point issue (it's easier to charge $10/month than $100 one off)
3) Builds a solid relationship between ISV and vendor
4) Chance to upsell, assuming the offering is good
And the only way you're going to be a big software vendor is by being a small one first.
Due to the nature of software development a subscription based model is really the way to go, but how do make sure that you have continues updates that actually make software worth subscription fees.
If you're providing a service it's a lot easier to motivate subscription frees but if you're planning on having people pay monthly for monthly releases, well than that's a thin line between success and utter failure. I don't see how this would work with most software.
Update: #Dscoduc
I would call that a service then. Make a clear distinction between software release schedule and support. If you want to charge for a premium support deal well that service gonna have to be pristine. But I do see how it could work. People might end up buying subscription based software on the premises that they will be able to tailor it to fit their needs without programming experience and at a low cost.
Your challenge lies in being able to listen to your customers and really find a way of taking their feedback and making that the foundation for your software life-cycle and that's not going to be an easy thing to do.
Maybe we should petition stackoverflow for a way of marking content not related to programming but interesting to programmers.

Trialware/licensing strategies [closed]

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I wrote a utility for photographers that I plan to sell online pretty cheap ($10). I'd like to allow the user to try the software out for a week or so before asking for a license. Since this is a personal project and the software is not very expensive, I don't think that purchasing the services of professional licensing providers would be worth it and I'm rolling my own.
Currently, the application checks for a registry key that contains an encrypted string that either specifies when the trial expires or that they have a valid license. If the key is not present, a trial period key is created.
So all you would need to do to get another week for free is delete the registry key. I don't think many users would do that, especially when the app is only $10, but I'm curious if there's a better way to do this that is not onerous to the legitimate user. I write web apps normally and haven't dealt with this stuff before.
The app is in .NET 2.0, if that matters.
EDIT: You can make your current licensing scheme considerable more difficult to crack by storing the registry information in the Local Security Authority (LSA). Most users will not be able to remove your key information from there. A search for LSA on MSDN should give you the information you need.
Opinions on licensing schemes vary with each individual, more among developers than specific user groups (such as photographers). You should take a deep breath and try to see what your target user would accept, given the business need your application will solve.
This is my personal opinion on the subject. There will be vocal individuals that disagree.
The answer to this depends greatly on how you expect your application to be used. If you expect the application to be used several times every day, you will benefit the most from a very long trial period (several month), to create a lock-in situation. For this to work you will have to have a grace period where the software alerts the user that payment will be needed soon. Before the grace period you will have greater success if the software is silent about the trial period.
Wether or not you choose to believe in this quite bold statement is of course entirely up to you. But if you do, you should realize that the less often your application will be used, the shorter the trial period should be. It is also very important that payment is very quick and easy for the user (as little data entry and as few clicks as possible).
If you are very uncertain about the usage of the application, you should choose a very short trial period. You will, in my experience, achieve better results if the application is silent about the fact that it is in trial period in this case.
Though effective for licensing purposes, "Call home" features is regarded as a privacy threat by many people. Personally I disagree with the notion that this is any way bad for a customer that is willing to pay for the software he/she is using. Therefore I suggest implementing a licensing scheme where the application checks the license status (trial, paid) on a regular basis, and helps the user pay for the software when it's time. This might be overkill for a small utility application, though.
For very small, or even simple, utility applications, I argue that upfront payment without trial period is the most effective.
Regarding the security of the solution, you have to make it proportional to the development effort. In my line of work, security is very critical because there are partners and dealers involved, and because the investment made in development is very high. For a small utility application, it makes more sense to price it right and rely on the honest users that will pay for the software that address their business needs.
There's not much point to doing complicated protection schemes. Basically one of two things will happen:
Your app is not popular enough, and nobody cracks it.
Your app becomes popular, someone cracks it and releases it, then anybody with zero knowledge can simply download that crack if they want to cheat you.
In the case of #1, it's not worth putting a lot of effort into the scheme, because you might make one or two extra people buy your app. In the case of #2, it's not worth putting a lot of effort because someone will crack it anyway, and the effort will be wasted.
Basically my suggestion is just do something simple, like you already are, and that's just as effective. People who don't want to cheat / steal from you will pay up, people who want to cheat you will do it regardless.
If you are hosting your homepage on a server that you control, you could have the downloadable trial-version of your software automatically compile to a new binary every night. This compile will replace a hardcoded datetime-value in your program for when the software expires. That way the only way to "cheat" is to change the date on your computer, and most people wont do that because of the problems that will create.
Try the Shareware Starter Kit. It was developed my Microsoft and may have some other features you want.
http://msdn.microsoft.com/en-us/vs2005/aa718342.aspx
If you are planning to continue developing your software, you might consider the ransom model:
http://en.wikipedia.org/wiki/Street_Performer_Protocol
Essentially, you develop improvements to the software, and then ask for a certain amount of donations before you release them (without any DRM).
One way to do it that's easy for the user but not for you is to hard-code the expiry date and make new versions of the installer every now and then... :)
If I were you though, I wouldn't make it any more advanced than what you're already doing. Like you say it's only $10, and if someone really wants to crack your system they will do it no matter how complicated you make it.
You could do a slightly more advanced version of your scheme by requiring a net connection and letting a server generate the trial key. If you do something along the lines of sign(hash(unique_computer_id+when_to_expire)) and let the app check with a public key that your server has signed the expiry date it should require a "real" hack to bypass.
This way you can store the unique id's serverside and refuse to generate a expiry date more than once or twice. Not sure what to use as the unique id, but there should be some way to get something useful from Windows.
I am facing the very same problem with an application I'm selling for a very low price as well.
Besides obfuscating the app, I came up with a system that uses two keys in the registry, one of which is used to determine that time of installation, the other one the actual license key. The keys are named obscurely and a missing key indicates tampering with the installation.
Of course deleting both keys and reinstalling the application will start the evaluation time again.
I figured it doesn't matter anyway, as someone who wants to crack the app will succeed in doing so, or find a crack by someone who succeeded in doing so.
So in the end I'm only achieving the goal of making it not TOO easy to crack the application, and this is what, I guess, will stop 80-90% of the customers from doing so. And afterall: as the application is sold for a very low price, there's no justification for me to invest any more time into this issue than I already have.
just be cool about the license. explain up front that this is your passion and a child of your labor. give people a chance to do the right thing. if someone wants to pirate it, it will happen eventually. i still remember my despair seeing my books on bittorrent, but its something you have to just deal with. Don't cave to casual piracy (what you're doing now sounds great) but don't cripple the thing beyond that.
I still believe that there are enough honest people out there to make a for-profit coding endeavor worth while.
Don't have the evaluation based on "days since install", instead do number of days used, or number of times run or something similar. People tend to download shareware, run it once or twice, and then forget it for a few weeks until they need it again. By then, the trial may have expired and so they've only had a few tries to get hooked on using your app, even though they've had it installed for a while. Number of activation/days instead lets them get into a habit of using your app for a task, and also makes a stronger sell (i.e. you've used this app 30 times...).
Even better, limiting the features works better than timing out. For example, perhaps your photography app could limit the user to 1 megapixel images, but let them use it for as long as they want.
Also, consider pricing your app at $20 (or $19.95). Unless there's already a micropayment setup in place (like iPhone store or XBoxLive or something) people tend to have an aversion to buying things online below a certain price point (which is around $20 depending on the type of app), and people assume subconciously if something is inexpensive, it must not be very good. You can actually raise your conversion rate with a higher price (up to a point of course).
In these sort of circumstances, I don't really think it matters what you do. If you have some kind of protection it will stop 90% of your users. The other 10% - if they don't want to pay for your software they'll pretty much find a way around protection no matter what you do.
If you want something a little less obvious you can put a file in System32 that sounds like a system file that the application checks the existence of on launch. That can be a little harder to track down.

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