201804.12
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Post-Settlement Obligations in Software Settlements

A settlement agreement to resolve software copyright infringement claims is not the final word in obtaining a release of liability. There are a number of obligations triggered by the settlement agreement that cannot be ignored to avoid jeopardizing the release of liability. Businesses must create internal protocols for risk management, future software audits, license compliance,…

201712.06
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How to respond to a VMware Audit

Managing a complex IT environment very challenging, even before becoming involved in an external software audit from a software publisher or a third-party auditing entity. Businesses facing VMWare audits in particular should be prepared to take a number of steps to ensure compliance and avoid exacerbating any potential copyright infringement claims. Step 1: Identify the…

201710.24
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VMware Licensing: Common Questions about Licensing Rules and Restrictions, Part II

Virtualization can reduce the number of physical machines required in an environment and have several other benefits, but it can also require an understanding of complex technical and licensing concepts. Failure to properly license the environment can subject the company to unbudgeted licensing and compliance fees. The following list includes several common questions and concerns…

201708.30
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VMware Audits: What You Need to Know About Licensing Rules, Part I

It is not unusual for companies to use virtualization technologies to reduce costs, ensure redundancy, and reduce physical size of the network. Some of these companies are turning to VMware to manage their virtualized environments. Virtualization can involve complex technical and licensing issues. Failure to properly license the environment risks subjecting the company to unbudgeted…

201708.16
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Navigating Microsoft License Verification Audits

Microsoft, like other software publishers, routinely audits customers to help ensure that it is protecting the value of its intellectual property.  Microsoft verifies its customers’ compliance using several methods. Microsoft License Verification (also, Software Asset Management “SAM” request). In a SAM request, Microsoft assigns a third party to reach out to a customer to confirm…

201707.28
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Superseding Audit Rights for Software Copyright Infringement: Settlement Agreements Versus Software License Agreements

Many software copyright infringement claims are resolved informally and often the terms are set forth in a settlement agreement. The critical terms in every settlement agreement purporting to resolve copyright infringement claims include the release of liability, confidentiality, warranties and representations, monetary sums to be paid, and in cases of software, future auditing rights. Third-party…

201706.20
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Copyright Infringement Defense: Know When to Consult an Expert

Even though software audits are commonplace in many businesses, recipients of audit notices make many mistakes when it comes to audit responses.  Because software publishers can often assert claims for copyright infringement if the audit goes badly, it is important to manage the audit effectively from the outset.  Some companies do not respond to the…

201705.09
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Intellectual Property Liability Considerations for M&A Transactions

Keli Johnson Swan, The Licensing Journal, April 2017 Mergers and acquisitions (M&A) typically require extensive financial and legal disclosures, due diligence, and complex contract language to protect buyers from legal issues that may arise from the purchase. Potential liability arising from intellectual property issues is a significant factor to consider in any M&A transaction. Following are a…