Navigating Potential Pitfalls in Termination Provisions Software Agreements

IT Asset Management Software | 0 comments

by | March 6, 2015

There are many obvious problematic provisions in a software license agreement. These provisions discuss audit rights, scope of the license grant, potential third-party use, limitations of liability, indemnity, and limitations on the transfer of licenses. When negotiating a licensing transaction, licensees frequently negotiate these provisions. One of the provisions in the license agreement that is often overlooked during the negotiations but that frequently plays a significant role in license disputes is the termination provision.

The termination provision can appear in many different places in a license agreement. Sometimes, there are multiple termination provisions in the agreement. Consider these five questions for successfully navigating potential pitfalls: 1. Where should counsel look for termination provisions? Publishers often include a separate provision for termination of the licenses, however, that is not the only place licensees should look to identify troubling language. Even if there is a separate termination provision, publishers also include termination provisions inside the audit provision to give it additional leverage during audit negotiations.


Submit a Comment

Subscribe To Our Newsletter

Subscribe To Our Newsletter

ITAM Channel brings the best news and views from the ITAM industry. Sign up for the newsletter and get them straight to your inbox

You have Successfully Subscribed!