I've dealt with extremely customized licenses for businesses (financial) that wanted software built for their use, but also to have the ability to resell the software that was built specifically for them. Not much surprises me anymore when it comes to expectations of legal departments. You just don't want to get into any kind of legal battle in the future over your software. I don't know anything about the size of your business, or who uses your software, but I do know that when it gets ugly and someone is looking for rights to software, you need to have things clearly laid out or you could end up devastated by a company that has funds to keep putting into legal fees that you may not.

I hope that this scenario never plays out, because I think releasing this is something that really adds value to the community that deals with databases. I just don't want to see someone trying to make a living get hurt by a licensing issue. Unfortunately, when it comes to high-end business, it's not so uncommon when things don't go the way your client wishes them to go. Best of luck to you!