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Negotiating Software Contracts: Successfully Negotiating an Indemnification Section

Stephen F. Pinson, The Licensing Journal, November/December 2016

Indemnification is a very important provision in a software agreement. It transfers legal risk between contracting parties, and the indemnification provision acts like an insurance policy for future lawsuits where a contracting party is sued by a third-party to the contract. Because this provision is a risk transfer mechanism, it is crucial to understand it and to successfully negotiate it to prevent unwanted risk.