Sounds like the developer wants to license the software for use. THis is actually what you get in most software EULA's.
If they want ownership, then a contract needs to be drawn up that both parties agree to...for the companies protection as well as the developers. It will probably cost a lot more since the developer is giving up any rights to future profit from the software
I'm not an expert in this area, but that's how I see the situation.
Yep. There is probably some basic software programming contract law that is utilized everyday by software programmers, which I need to become aware of, so that I can advise our owner.
The problem is, our owner had the idea. He told the programmer, and now the programmer apparently would like to own the program. Is that how you term it?
Our owner doesn't want to buy the license to use it. He wants to own the software outright. Especially since he is working with the programmer to get it developed.
then its time to talk numbers with the developer and find out if he is even willing to do the job and hand over all source code etc upon completion.
I would also probably talk to a lawyer experienced with this type of intellectual property, and also maybe talk to another developer willing to create the program and transfer all rights to get an idea of a price for this type of job.
Hopefully an experienced developer can chime in and help out some more. good luck!