I'm curious to know your thoughts and experiences with something specific regarding license agreements for third party software and scripts.

Usually, as the developer, I make all script purchases myself. If I need to bill my client for an "out of pocket expense" for the script as per our agreement, then I simply bill them after I make the script purchase.

But now I have another situation that came up and I'm wondering how you all would handle this situation?

I have a client who needs a XML Flash photo gallery script that costs just $15. I asked him to make the purchase for me as a way of getting him to put some skin in the game so that I know he's committed to the project since he's taking his sweet time getting me paperwork and a deposit. (He has until tomorrow to fax over paperwork or the deal is off).

The specific license for this gallery script is use for free on an unlimited number of websites. But my client doesn't want me to be able to use the script on another client's website "at his expense."

This script is something I researched and sought out exclusively for him. I have no intention on using it anywhere else. But the license agreement is also non-transferable. So would it be a violation for my client to purchase the script and then send it to me to use? Is that considered transfering even if I directed him to make the purchase?

I'd really like to know all the details so that in the future I can cover myself in the case of other, more expensive scripts.

This particular client previously stated he is not OK with me billing him for any scripts I purchase for his website because then I might get to use them for other websites "at his expense" and I can see his concern, but at the same time (getting into opinion here) I've given him a generous discount of $600 and free hosting for 2 years so either way I think billing him for the $15 script and being able to use it however I may need in the future is absolutely fair.

Do you bill your clients for out of pocket expenses for script licenses? Or do you include that in the cost of your development? Do clients object?

Thanks for your thoughts in advance!

Was the client made aware initially that you would be using third party scripts? I could understand where he is coming from if he was not aware the he would be responsible for additional expenses beyond what you are charging for development.

Otherwise I would just explain to him that you chose the script based on his needs and if there were a cheaper script that did not permit reuse and suited his needs just as well you would use that one instead ( or better yet tell him it's 15 bucks, it's not worth searching for another script that doesn't permit reuse ).

Overall, provided he was aware that he was responsible for the cost of third party scripts, it seems kind of ridiculous to make an issue out of $15 given the scale of the project (I'm assuming that the price tag is a much larger number than the $600 discount).

Edit:
Regarding the license being non-transferable. I don't think this is an issue (keep in mind I'm no lawyer). Sending the script to a developer for use in your own site is not the same as transferring the license.

What are $15? Nothing, just buy the script for yourself and you can reuse it as much as you need.

The client can get his own "skin" for his photo gallery and he has something unique.

If the client is delaying paying a deposit, they will also find ways of not paying at the end of the project.