The report provides an overview of the scientific software industry and discusses issues regarding software licensing and commercialisation. Particular focus is given to modelling and simulation software that is based on a fundamental chemical and physical description of matter, i.e. materials modelling. The aim is to provide a high level overview of the industry, its typical requirements and business models, and in particular to address the following topics: The structure of the software industry. Requirements for software development: in-house and through collaboration. Routes to market for scientific software, e.g. via software houses or direct licensing into specific industries. Commercialisation requirements: standards, IP ownership, licensing schemes. Warranty and liability issues.