>I have a situation. Pretty sure I know my position but want
> to double-check with yous fellas. Some of this is directly
> 

Ask a lawyer - this is the wrong place.

> I was approached to make a prototype. In fact, by agreement,
> I made six, which were taken away for sale (they weren't in fact
> sold, for a reason I don't think is pertinent here). 

> The persons then said
> to me "if you aren't going to be our bulk or ongoing manufacturer,
> we don't want your prototypes, and now we'll have to pay
> someone else to make a prototype". 

What does your written contract say?  Prototypes or proto and 
production?  How much was the bill?  If small, you may want to just eat it,
if the bill is large, talk with a lawyer.

You said the protos didn't sell.  Is it possible that the product may be
a "no starter" for them and they are using the above as an excuse
to cut payments for a product that won't sell well or be cost effective?

> So now comes the question of IP. My feeling is this -
> 
> I had no help developing the novel electronic process of executing
> the function of the prototype. Neither did I have any help writing
> the s/w in the prototype. They have not paid the undisputed bill
> (I am still out of pocket for components, components I wouldn't
> use in a month of Sundays). The application they want to use this
> product for is hardly ground-breaking and many other types of
> this product already exist
> 
> Therefore, as no account has been settled and no discussion is
> forthcoming from them about settling it -
> 
> I own all the physical materials
> I own the s/w copyright
> I own the IP/copyright of the prototype and its novel process

Probably true, ask a lawyer.  The real question however, is what
are you planning to do if they don't pay?  It appears you want to
keep the rights to everything, however unless you plan on selling 
the design yourself there isn't much to be gained.  You did say
that there is nothing special about the product and that many
similar products exist.  Do you want to get into that game?

In any case, you may want to keep full documentation of the product,
including source code. It is possible that these guys may have 
someone reverse engineer your design and do a re-layout and even
use your code.  Proof that they copied the unpaid for prototype is a
good lawsuit.

Ken


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