Without a contractual provision to the contrary, ambiguous terms in a software license will be construed against the software publisher. Provided that there are no other business factors that would make litigation unwise, an ambiguous license agreement is the situation most likely to lead to litigation. Construction against the Drafter When dealing with ambiguities, it…
It has been said that software is the new oil. It fuels the information revolution. And in this metaphor, software audits are the meters that measure the flow—and extract maximum revenue for software makers. The auditors arrive on your company doorstep to “true up” your license and make sure you’re paying for all the software…
I am a partner in Scott & Scott, LLP a firm that focuses on technology law matters in Southlake, Texas. We represent companies in software audit matters initiated by the major publishers including Microsoft, Oracle, IBM, Autodesk and many others. My team has combined experience of over 50 years defending software audits and I spend…
Almost every business today operates with the support of digital tools. One survey put the number of companies investing in digital technologies to transform their business at an astounding 97 percent. Conducting business in this digital age means licensing software from major publishers, such as IBM, Oracle and Microsoft, and the subsequent acknowledgement and anxiety…
One of the most common mistakes I encounter in software audits is what I call the post-effective date software buying spree. The buying spree occurs in response to a letter from a publisher or publisher’s attorneys requesting a self audit. Many clients are discouraged to learn that software purchases made after the date of the…
Businesses that receive software audit demand letters from auditing entities such as the BSA or SIIA, or from software companies like Autodesk or Microsoft, often contend they cleaned up their network after receipt of the letter and should be released from any further obligation to conduct an audit or communicate with the auditor. Audited business should…
BSA | The Software Alliance (BSA) is an organization that represents software companies and prosecutes alleged unlicensed use of those member companies’ software products. The BSA generally initially sends a company a letter indicating the company may be out of compliance with applicable software license agreements and demanding that the company investigate and inspect each…
One of the most controversial tactics the software policing agencies use when calculating its settlement demands is its practice of unbundling software suites such as Microsoft Office and Adobe Creative Suite. Unbundling occurs when the target of an agency audit is unable to provide acceptable proof of purchase for one or more installation of a…
BSA | The Software Alliance (“BSA”), and the Software & Information Industry Association (“SIIA”) pursue copyright infringement claims on behalf of software publishers, such as Microsoft, Adobe, and Autodesk, among many others. Typically the BSA and SIIA send audit letters to companies believed to be using unauthorized copies of software products. In their letters, they demand that…
One of the top ten questions asked by my clients is “How long does the self-audit process take from start to finish?” Of course I give the standard lawyer answer: it depends. Here are the steps to a typical software audit. Preparation of Audit Materials (3 to 6 months) A software audit is a request,…
