In late August 2022, Microsoft announced significant changes to several of its licensing models that will have big impacts especially on cloud and hosted solution providers and the services they offer to their customers. While the new licensing terms are not set to be revealed until October 1, 2022, potentially affected businesses should set their…
In our experience, many companies facing software-licensing audits initiated by vendors like Microsoft, Oracle or IBM seem to be under the impression that auditors have a nearly unfettered right to information. This is not the case. However, too many audit targets discover too late that what may have seemed like good-faith cooperation in the interest…
Facing a software audit is a daunting process, which takes time, money, and resources to complete. Typically, the first question the target of an audit asks is whether the audit is legitimate, closely followed by why the company has been selected for an audit. What triggers an Autodesk audit? Disgruntled employee One of the common ways…
Software license agreements often contain clauses allowing the licensor to review books and records, “Books and Records” clauses. These are often boilerplate clauses included in license agreements without much consideration from the contracting parties. When a Books and Records clause is used in a software agreement without a software audit clause, it can lead to…
There is a growing trend for software publishers to keep software audits in-house and avoid using external organizations to pursue copyright infringement claims. Often, the compliance teams at the software publishers seek payment for software non-compliance through contract provisions, which specify a penalty or include retroactive support and maintenance. External organizations, such as BSA| The…
The end of the year is a busy time for software publishers and entities like the BSA | The Software Alliance (“BSA”) and the Software & Industry Information Association (“SIIA”) to resolve an audit target’s copyright infringement dispute by entering into settlement agreements. While it may be advantageous for a company to reach a quick…
A software audit may come in many forms, ranging from an offer for a free Software Asset Management (SAM), a License Verification, or a request by a representative organization, such as an outside law firm, the Business Software Alliance (BSA) or Software & Information Industry Association (SIIA). Unfortunately, many companies do not understand the implications…
At this stage, if your company has not faced a software audit, you are probably on borrowed time. Many software publishers are initiating software audits using their in-house compliance teams instead of outsourcing to law firms or third-party vendors. Often, compliance teams will contact the business or IT contact at the targeted company. These technical…
Previously, I wrote an article about poor advice that can get you sued for copyright infringement in software audits. While some of the main auditors have changed, the advice has not. The following is the most common bad advice that can result in litigation. Software publishers now commonly initiate audits through compliance teams pursuant to…
Companies are sometimes fielding multiple software audit demands from multiple software vendors simultaneously, which can significantly impact in-house counsel. Software audits may be initiated by publishers or through outside entities such as BSA | The Software Alliance. Audits initiated directly from a software publisher are sometimes presented as a sales offer from the compliance team,…
