Seems to me that leaves the floor pretty wide open. It does not say the cost of a blank CD and USPS postage to mail it. It says your cost of physically performing source distribution. So the developers "choice" of how to physically perform the source distribution could easily be calculated to an amount that would deter the request for the source code.
For example....if the developer only provides for his or her physically delivering the CD to the customer in person then you would have to figure travel costs.
Or even if we are talking about mailing it through the post office...lets run down a list of some of the cost of physically performing source distribution that most people might not think of.
1.) The retail price of the developers computer. You can't make a CD for someone without a computer and that is a valid cost...enough though it is one that probably has already be paid by the developer in advance, it is still a cost involved in providing the requested source code.
2.) The overhead cost of the developers home or office in which he or she has that computer also with the costs involved to provide electricity to power said computer.
3.) Mailing the the CD with the source would require a trip to a post office of the developers choice....this requires a car. So the retail price of the developers car would be a valid cost to comply with the request along with all other cost associated with allowing the developers to drive said car to the post office (i.e. insurance, tags, gas....ect.)
And the developer may decide to mail that from a post office several hundreds of miles away from his or her home. At today's gas prices that could get REAL expensive.
Now given some time I could come up with a longer list but you get my point.
I think if someone requests a copy of the source code and gets a quote for $50,000 to deliver it to them...they will most likely cancel the request. And if they don't and wish to pay $50,000 for it then give it to them and let them do what they want with it. Move on to the next project and contact that person again to see if they want to buy your new project as well....
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