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Software Agreements & Audits

Managing and maintaining a company’s license position is a daunting task, especially given the increasingly complex architectures utilized in today’s IT environments and the complexity of software licenses. Software publishers and their trade associations (BSA | The Software Alliance and the Software & Information Industry Association) continue to ramp up their license enforcement efforts to increase revenues. Learn how you can minimize the risk of software audits and tips to reduce settlement dollars when you face a software audit.

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Building a Vertical Around Regulated Industries to Increase Your Business

Turn a regulatory barrier-to-entry into a market differentiator and lead generator for your managed services organization. Although the media is focusing on information security and privacy concerns, for some industries, the security game is old hat. Healthcare (HIPAA/HITECH), financial services (GLBA), and government services (FIMSA) companies have been subject to information security regulations for nearly a decade. As a managed services provider, you likely understand that information security requirements for your customers become requirements for you. But once an MSP becomes compliant under a regulatory framework, what was once a barrier to entering the market, now becomes a strength for your organization. Learn what is necessary to evaluate your organization’s readiness for compliance under HIPAA/HITECH, GLBA, SOX, and FIMSA, and how you can turn your eventual compliance into a tool to driving business and growth.

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Managed Services Contract Negotiation: How to Win More Business While Staying Safe!

Whether you are transitioning from working on a time-and-materials basis to managed services or whether you have established yourself as a pre-eminent force in the MSP market, it is important to memorialize your client’s expectations in a written agreement. There are a lot of bad provisions out there, and it is critical to recognize client concerns that may manifest themselves during the contract negotiation process. The contract does not have to be a deal-killer, it can actually be used to enhance your sales process provide insight into issues before they arise.

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Webinar (Replay) New Tools and Strategies to Reduce Software Risk and Successfully Defend Software Audits

In this webinar Robert Scott of Scott & Scott, LLP and Derrick Hansen of License Dashboard discuss useful tips, tools and strategies to simplify software asset management and successfully defend software audits, including: how to implement a robust, yet flexible program utilizing the latest SAM tool; how to reduce the risk of software non-compliance; how to maximize the potential of your IT budget; and best practices to deal with third-party audit requests.

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Legal Aspects of Software Agreements with Large Vendors

Understanding the legal aspects of technology contracts is critical. Too often, key provisions are overlooked during the rush to engagement, and the customer is left holding the bag when the services or software don't quite meet the needs of the organization. This presentation covers major terms and conditions that should be included in agreements with major software publishers including IBM, Microsoft and Autodesk.

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Cloud Computing Contracting

Businesses are focusing on the potential cost savings, profits and agility to be found in the cloud. But entering into cloud computing contracts without understanding the inherent risks can cripple an otherwise healthy organization. This presentation covers how to address these risks through proper contracting and risk transfer using insurance.

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How to Compete as an MSP in a Regulated World

Are you ready to use industry-specific regulations as market differentiators for your managed services organization?  Healthcare (HIPAA/HITECH), financial services (GLBA), and government services (FIMSA) companies have been subject to information security regulations for nearly a decade, but how do these regulations impact your day-to-day operations? During this session, Julie will generally discuss security and data handling requirements for managed services clients, and will also talk about how use certification to transform regulatory knowledge and mature processes into a way to drive business and growth.

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Enterprise Software Licensing

Software licensing options for large enterprises have evolved substantially over the past several years.  Businesses today have more options and flexibility to meet their software needs. However, with that flexibility often comes complex software asset management (SAM) obligations. Licensing models that were previously unavailable absent extensive negotiations are now regularly offered.  IT teams must equip themselves to recognize the unique challenges entailed with the various options in order to avoid unnecessary licensing exposure.  This CLE will discuss traditional and newly developed licensing models, principal concerns about current licensing models, types of license agreements, and primary causes of exposure in enterprise-level software audits.

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Ethical Considerations for Software Audits Webinar (Replay)

Keli Johnson Swan addresses important considerations for companies facing a software audit and strategies for protecting the audit materials from being used at trial in the event settlement is not reached. Depending on how a company chooses to audit and submit results, traditional protections under attorney-client privilege and work-product privilege may not apply.

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Applied Electronics Corp., AEC Enterprises, Inc., and AGRO Globe Engineering, Inc. vs. Autodesk, Inc. and Software & Information Industry Association

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Autodesk, Inc. vs. Taney Engineering, Inc. et al.

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Creative Edge Master Shop, Inc. vs. Autodesk, Inc.

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Hot Topics in Adobe Licensing Webinar (Replay)

Rob Scott and Julie Machal-Fulks discuss how to handle Adobe audits. This is a timely webinar as Adobe appears to be increasing its audit activities directed at its end users. Adobe audit demands can be burdensome and extremely expensive.

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M&A Transactions and Software License Due Diligence

This CLE webinar provides guidance for counsel on the buy-side of M&A transactions. The panel explains why software due diligence (often overlooked) is critical to avoiding the risk of acquiring software assets that may have greater liability attached to them than the assets are worth.

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Webinar - To SPLA or Not to SPLA - Microsoft Licensing for the Hosting Services Provider (Replay)

In this presentation, Rob Scott and Christopher Barnett provide an overview of Microsoft’s Services Provider License Agreement (SPLA) framework, how to determine whether that framework is right for your company, and an explanation of some of the risks associated with SPLA licensing.

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Cloud Law: Everything You Need to Know about Cloud Computing and the Law

In this session Robert Scott addresses the many contract issues that MSPs should address in their SLAs for cloud services and how to mitigate the risks through contracting and the use of insurance. He addresses the new legal challenges of cloud computing for MSPs and identify some of the areas that present the highest risk and offer suggestions for mitigating that risk.

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Managing Risk, Compliance and Legal Hurdles in Your MSP & Cloud Practice

Nearly all MSPs have encountered legal or compliance issues in the course of their business. This unique session covers a wide range of issues that are likely to arise in your managed services or cloud practice, including methods for you to deal with those issues.

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Cincom Systems, Inc. vs. Novelis Corp.

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Affiliated Computer Services, Inc. vs. Cincom Systems, Inc.

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Software Compliance Risks in M&A (Replay)

IP rights are becoming increasingly important in asset and stock transactions involving business computers and software. The complexity of the software licenses makes it difficult to understand which licenses should and can be transferred as part of an asset acquisition or divestiture. Recent cases including Cincom vs. Novelis and ACS vs. Cincom have highlighted the importance of incorporating IT asset due diligence as an important aspect of deal structure planning. The IT assets acquired in a merger may have greater liability attached to them than the assets are worth.

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Cloud Contracting

Businesses are focusing on the potential cost savings, profits and agility to be found in the cloud. The ability to safely leverage cloud-based technology offerings will become increasingly important. Through specialized contracts for the cloud you can mitigate IP, business continuity, compliance and legal liability risks associated with cloud services.  This presentation addresses the legal challenges for businesses utilizing or providing cloud computing services.

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Key Strategies for Resolving Software Disputes

Shrinking IT budgets, fierce competition and a mature software market have increased the motivation for software publishers (such as Microsoft Corp., IBM, Adobe Systems Inc., Oracle) to conduct software licensing audits - demanding that their customers demonstrate ownership of licenses for all software installed on their computers. Many companies are paying substantial fines and suffering negative publicity as a result of these audits. Learn effective approaches to resolving software licensing disputes.

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Managed Services Pricing: How to Select the Most Profitable Pricing Model for your MSP and Cloud Practice

Pricing can either drive or inhibit your managed services success.

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Not on my Cloud! How to Differentiate your Cloud Offering

Cloud is everywhere but how do managed services providers make money in the cloud?

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Managing Privacy and Security Risks in Cloud Computing

Data breaches continue to increase simultaneously as cloud computing adoption grows.  It is critical that companies manage and mitigate privacy and security risks in cloud computing.  This presentation addresses privacy and data security with implications for licensing transactions, data breach case histories and best practices.

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Managing Data Breaches for Financial Services

Data breaches are unfortunately becoming common events for financial services organizations, while the laws regulating data breach events are frequently confusing and complex.  This presentation covers key regulatory requirements and strategies financial services companies should understand when complying with GLBA, FTC and other data breach regulations.

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Storms in The Cloud - The Legal Risks of Commercial Hosting (Replay)

Key concepts associated with software "hosting," the legal risks associated with licensing potentially affected IT environments, and strategies for mitigating those risks.

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Surviving Autodesk Audits (Replay)

Autodesk products are used by more than 10 million architects, designers, engineers, manufacturers, and digital artists across multiple industries, including architecture, engineering, construction, manufacturing, automotive, media and entertainment, and utilities and telecommunications.  For every legal copy of Autodesk software sold in the marketplace, five more illegitimate copies are distributed. What does this mean for the average business? If you are using Autodesk products, you should ensure that you fully understand your obligations under Autodesk’s sometimes confusing license terms and that you have dated documentation to demonstrate ownership of each product you are using.

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Recent Trends in Software Licensing Transactions and Disputes

This presentation examines recent trends in software licensing and disputes with major publishers including Microsoft, Autodesk, IBM, and Symantec.  We will cover the lawyer’s role in counseling clients in software contract negotiations and highlight the most important terms to negotiate. In addition, you will learn how to prepare and defend your clients in software audits initiated by software publishers and their trade groups including the Business Software Alliance.

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IT Procurement - Key Issues and Negotiation Strategies (Replay)

Understanding the important issues when negotiating a technology-related contract is critical, whether it is for IT services, software, hardware, or hosting. Too often, key provisions are overlooked during the rush to engagement, and the customer is left holding the bag when the services or software don't quite meet the needs of the organization. 

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Keys to Successful Microsoft Negotiations (Replay)

In this webinar,  Robert J. Scott, Managing Partner, of intellectual property and technology law firm,  Scott & Scott, LLP, will share negotiation tips to help avoid pitfalls, including key provisions that should be included in settlement agreements and license agreements with Microsoft. Whether you have a dispute with Microsoft or are considering a substantial purchase, experienced counsel can help you successfully negotiate with Microsoft.

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The Legal Risks of IBM Licensing (Replay)

Because IBM products like WebSphere, DB2, Tivoli, Informix, and Lotus Notes are expensive, and companies cannot easily or quickly verify compliance, the risks associated with IBM licensing can be severe. In this presentation, Julie Machal-Fulks discusses some of the challenges that organizations encounter when trying to ensure compliance with their IBM license agreements. In some instances, the costs associated with non-compliance can be tens of millions of dollars. Proper licensing is critical to avoid unexpected liabilities. 

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Enterprise Software Licensing, New Choices-New Obligations

Software licensing options for large enterprises are evolving almost as quickly as the mission-critical software solutions those companies deploy. Where, with some exceptions, the touchstone of most software licensing in the recent past has been the software installation itself, businesses today have more options and flexibility to met their software needs. However, with that flexibility often comes complex software asset management (SAM) obligations.  

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Privacy & Security Risks in Cloud Computing

For attorneys handling technology transactions for their clients, it is virtually guaranteed that they have or will encounter a cloud computing agreement. On the surface, cloud agreements are similar to traditional technology licensing and services agreements; however, cloud computing engagements expose both the client and the service provider to risks not present in more traditional technology transactions.  At the top of the list of unique cloud risks are the legislative topics-du-jour: privacy and security regulatory compliance. Because of the nature of cloud computing—wherein clients access and store data on service provider’s systems across a public Internet—both parties are forced to confront these regulatory risks, whether they want to or not.  Robert J. Scott, Managing Partner, Scott & Scott, LLP, a Texas-based law firm with a privacy and security practice area, shares suggestions on how each party can mitigate, balance, or otherwise eliminate the privacy and security risks in cloud computing.  Based on Rob Scott’s extensive experience negotiating cloud computing agreements, he addresses each element that contributes to privacy and security risk in cloud computing.

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The HITECH ACT and Its Impact on MSPs

The HITECH ACT and Its Impact on MSPs The relatively recent revisions to the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules, known as the HITECH Act (Health Information Technology for Economic and Clinical Health Act), require both Covered Entities (health care provider who transmits health information in electronic format in connection with HIPAA covered transactions, a health plan, or health care clearinghouse) and Business Associates (entities that either perform a function or provide a service involving the use of PHI) to report any breaches of unsecured protected health information (PHI).As Business Associates, managed services providers are required to comply with the rules regarding security of the information.   Health care organizations and other Covered Entities are increasingly demanding about assurances related to the safety and security of data that is outside of their control.  In the event of a security incident, the Business Associate may be required to notify the individual whose PHI was leaked, the Secretary of the Department of Health and Human Services, and the media. Julie Machal-Fulks covers what MSPs should know about breach notification requirements and recommended procedures in the event of a breach.

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Cloud Contracting for MSPs

Cloud Contracting for MSPs Robert Scott  addresses the new legal challenges of cloud computing for MSPs. He identifies some of the areas that present the highest risk and offer suggestions for mitigating that risk. Rob highlights contract issues that should be covered in agreements, such asWhat happens if there is a data loss? How to evaluate term and termination provisions? What jurisdiction will prevail if there is litigation? What regulatory issues affect the business? How to protect confidential information? How to document who owns intellectual property?  Dealing with regulatory compliance issues? How and in what format will data be kept? What tools will be available to access data? How to draft Service Level Agreements for the cloud services? How to limit liability through risk transfer instead contractual limitations of liability? What country will data be stored? What indemnification does the vendor offer for infringement of third-party intellectual property rights or data breach? How to deal with end-of-term transition issues?

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Autodesk Licensing Guide

Autodesk products are used by more than 10 million architects, designers, engineers, manufacturers, and digital artists across multiple industries, including architecture, engineering, construction, manufacturing, automotive, media and entertainment, and utilities and telecommunications. To help combat pervasive piracy, Autodesk, along with other publishers, founded The Business Software Alliance (the BSA), an organization designed to investigate and punish businesses that are using software they cannot prove they own.   The BSA claims that 42 percent of the software used in the global marketplace is pirated. For every legal copy of Autodesk software sold in the marketplace, five more illegitimate copies are distributed. What does all of this mean for the average business?  If you are using Autodesk products, you should ensure that you fully understand your obligations under Autodesk’s sometimes confusing license terms and that you have dated documentation to demonstrate ownership of each product you are using.  If you are being audited by Autodesk or the BSA, you should seek experienced counsel to guide you through the process.

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HIPAA / HITECH Breach Notification Guide

As part of the American Recovery and Reinvestment Act of 2009, the federal legislature passed significant revisions to the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. Entitled the Health Information Technology for Economic and Clinical Health Act, or HITECH Act, these revisions now require both Covered Entities and Business Associates to report any breaches of unsecured protected health information (“PHI”). Depending on the severity of the breach in question, the Covered Entity or Business Associate may be required to notify the individual whose PHI was leaked, the Secretary of the Department of Health and Human Services, and the media. In addition, Covered Entities or Business Associates can be subject to criminal charges of up to $250,000 in fines and 10 years imprisonment.

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Data Privacy and Security in the Cloud

Cloud computing is exploding. Gartner estimates the cloud market will reach $150 billion by 2013. There is growing concern over how to meet regulatory privacy and security requirements. Robert J. Scott, Managing Partner, Scott & Scott, LLP, a Dallas-based law firm with a privacy and security practice area, will share suggestions on how to mitigate or eliminate the privacy and security risks in cloud computing. He will address the legal challenges of the cloud and highlight contract issues that should be covered in cloud computing agreements such as: What happens if there is a data loss? What broad or industry-specific regulatory issues affect the business? What jurisdiction will prevail if there is litigation? Will encryption be used in data storage and transmission? What indemnification does the vendor offer for infringement of third-party intellectual property rights or data breach?

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The Cloud and the Law

The advantages of cloud computing are many, so it is easy to see why industry discussion about the cloud is reaching a feverish pitch. And while the number of businesses adopting cloud-based services, few understand the numerous legal issues associated with cloud computing. Rob Scott addresses the various legal challenges for businesses utilizing or providing cloud computing services.

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How to Grow and Manage Your Online Reputation

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Hot Topics in Privacy and Security Law

Presenters Robert J. Scott, Managing Partner, Scott and Scott, LLP, and Rachel Simon, Regional Underwriting Manager, Chartis, cover key areas of data breach exposure, the importance of benchmarking security practices to avoid liability, risk management techniques and liability insurance. This presentation details of various thefts and makes recommendations about how to minimize the organizational impact and negative consequences following a loss. Covers the lawyer’s role in counseling clients on privacy and security laws and regulations.

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Successfully Defending Software Audits

Shrinking IT budgets and fierce competition among software publishers have created explosive growth in the incidence and frequency of software audits – a mechanism by which software publishers investigate their customers to determine if they are in compliance with software licenses and copyright laws.  In addition to developing internal enforcement operations, many publishers have engaged trade associations to perform enforcement activity under power of attorney.  Many companies are paying substantial fines and suffering negative publicity. Properly preparing for and responding to software audits can reduce the financial and organizational impact on your business.  According to the BSA’s Sixth Annual Global Software Piracy Study, “…a large portion of non-compliant software is deployed by mistake, either by consumers buying cheap software that they do not realize is counterfeit, or by IT departments making mistakes in managing volume licenses.”  Businesses that are most prepared and properly represented will have the greatest success in defending the inevitable software audit.

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Preparing your Managed Service Practice for Sale

Robert Scott’s Presentation at MSP World 2009 Las Vegas covers valuation metrics for Managed Services, keys to increasing the value of customer contracts, what buyers look for in your agreements with partners and employees, how to cash in on your brand and other intellectual property, increasing your sale price through prudent risk management, the role of real estate leases when selling a managed services practice, as well as common deal structures for equity and debt financing for acquisitions. 

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State Data Breach Notification Laws

Scott & Scott, LLP's chart of  state data breach notification laws.  If you have experienced a data breach, call Scott & Scott, LLP for help.

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Negotiating License Agreements with Oracle and Microsoft

Shrinking IT budgets, fierce competition and a mature software market have increased the motivation for software publishers (such as Microsoft Corp., Adobe Systems Inc., Oracle) to conduct software licensing audits – demanding that their customers demonstrate ownership of licenses for all software installed on their computers.  Many companies are paying substantial fines and suffering negative publicity. Even average, unintentional infringement can have significant legal and financially material implications.  Properly preparing for and responding to software audits can reduce the financial and organizational impact on your business.

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Successfully Defending Software Audits - Webinar

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Litigating Copyright Infringement Claims Whitepaper

Software copyright infringement litigation, frequently software anti-piracy claims, involve disputes between software publishers and their end-user customers.  Suits by one software publisher against another over trade secrets and copyright ownership generally involve competing works.  However, “competing works litigation” typically requires substantially more effort from the parties and the tribunal than anti-piracy software disputes. In these cases, the developer or owner of one program complains that a different product created or distributed by the defendant consists, in whole or in part, of the work in which the plaintiff holds the copyright. These cases on average involve significantly higher stakes than other software copyright disputes. The legal analyses and factual development in such matters can approach the level of complexity usually associated with patent disputes, and, indeed, many of the judicial frameworks regarding infringement analysis are similar to patent jurisprudence.

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Mergers & Acquisitions for Managed Service Providers

While 2009 is poised to be a stellar year for managed services, there are a lot of IT companies that will be bought and sold this year. There are a lot of opportunities this year in the IT channel but only a few will make wise decisions. Learn about business valuation basics, risk avoidance best practices, M&A negotiation tactics for both sellers and buyers, and legal issues to be considered for M&A transactions. 

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Summary of DMCA

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Educause DMCA Site

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Secret Service Network Incident Report

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Litigating Copyright Infringement Claims

Software copyright infringement litigation, frequently software anti-piracy claims, involve disputes between software publishers and their end-user customers.  Suits by one software publisher against another over trade secrets and copyright ownership generally involve competing works.  However, “competing works litigation” typically requires substantially more effort from the parties and the tribunal than anti-piracy software disputes. In these cases, the developer or owner of one program complains that a different product created or distributed by the defendant consists, in whole or in part, of the work in which the plaintiff holds the copyright. These cases on average involve significantly higher stakes than other software copyright disputes. The legal analyses and factual development in such matters can approach the level of complexity usually associated with patent disputes, and, indeed, many of the judicial frameworks regarding infringement analysis are similar to patent jurisprudence.

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Webinar: Protecting Your Managed Services Practice Part 1

Part 1 of a webinar discussing effective risk management as an integrated approach to identifying and addressing the various sources of risk and on implementing consistent, intuitive, and easily repeatable processes to manage and mitigate risk. 

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Database Copyright Registrations

This publication provides an introduction to Copyright Registration for Database applications.  If you have developed a software program of any type, it is important to consider seeking registration including protection for databases. 

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Investigating and Preserving Evidence in Data Security Incidents

This presentation covers legal developments in the area of network security and data privacy.  Topics include a review of federal regulations, state data breach laws, privacy court cases, and evidence preservation strategies. 

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Protecting your Managed Services Practice: Are you at Risk?

Effective risk management relies on an integrated approach to identifying and addressing the various sources of risk and on implementing consistent, intuitive, and easily repeatable processes to manage and mitigate risk.  Ensuring consistency across all risk management responses is as important as the details pertaining to each risk source. 

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Privacy and Security Laws for Health Care Organizations

Presentation slides from Rob Scott’s presentation to the AMGA’s Leadership Council on the topic of recent developments in privacy injury liability for the healthcare industry.  The presentation discusses legal developments and trends affecting healthcare providers.

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Managed Services: Service Level Agreements

How to develop service level agreements for managed services presented at the MSP Alliance Fall Conference.   Topics include service level agreements, master services agreements, and project engagement contracts for managed service providers. 

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Hot Topics in Open Source Licensing

Open Source Software licensing hot topics slide presentation.  Although there are dozens of open source licenses, the terms in copyleft licenses such as GPLv2 and GPLv3 seem to cause the most angst for enterprises using open source. Companies are concerned that they are putting their own IP at risk when using these licenses. In this presentation, you’ll gain a better understanding of copyleft licenses and how to manage the risks for your organization. 

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Software License Dispute Negotiation

If your business is involved in a software licensing dispute, will you know the best way to strategy to employ? In this session you’ll learn key strategies resolving software licensing disputes.  Topics covered include: overcoming legal obstacles, restoring trust & communication, sharing information without jeopardizing your legal position, and understanding both sides business and emotional drivers to document new license agreements that fit both parties’ current business requirements. 

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Privacy Law: Recent Trends

Privacy law presentation discussing legal developments in the area of network security and data privacy.  Topics include data breach, breach notification, privacy legislation, privacy court cases, and risk management.

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Data Breach: Investigating Security Incidents

Data Breach presentation slides from Rob Scott's presentation to the Dallas Bar Association regarding the attorney's role in investigating and responding to network secuirty incidents involving data breach. 

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Media & Technology Litigation

This presentation discusses the legal issues involved in common media and technology insurance claims.  Scott & Scott, LLP represents insureds in claims arising under media and technology business insurance. 

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Copyright Registration for Online Works

 This publication discusses basic concepts related to the copyright registration of websites.  Most internet law disputes turn on either trademark or copyright law.  Failure to timely register your website with the U.S. Copyright Office will dramtically effect your  ability to enforce your rights in court.   

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Copyright Registrations for Software Programs

 This publication provides an introduction to Copyright Registration for Software Programs.  If you have developed a software program of any type, it is important to consider seeking registration. 

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Internet Law: PPC and SEM

Internet Law presentation slides discussing the trademark and copyright issues that arise in internet marketing and search engine optimization campaign.  Topics include trademark infringement, copyright infringement, domain name disputes, and DMCA takedown. 

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Software Audit Tool

Scott & Scott’s Compliance Manager™ remotely audits your network and provides an immediate and accurate view of your software assets. It automatically documents the software deployed on your network, helping you to gage your current license compliance status; and effectively manage, control and protect software assets throughout your enterprise.

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Business Impact of a Data Breach

 Presentation highlighting the results from a study performed by the Ponemon Institute, sponsored by Scott & Scott, regarding the business impacts of data breach occurs.  Topics researched include the causes of data breach, spending on data breach prevention, use of encryption, and breach notification strategy. 

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Managing Software Disputes

Software audit defense presentation presented by Rob Scott, Scott & Scott, LLP.   Topics include bsa audit, siia audit, software arbitration, software litigation, and software licensing. 

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SEC- Proposed Data Breach Rule

The Securities and Exchange Commission ("Commission") is proposing amendments to Regulation S-P, which implements certain provisions of the Gramm-Leach-Bliley Act ("GLBA") and the Fair Credit Reporting Act ("FCRA") for entities regulated by the Commission.  

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Data Breach Survey Results

Scott & Scott, LLP and Ponemon Institute are pleased to report the results of a national survey that seeks to understand how a data breach affects an organization. The study focuses on the organization’s response to the data breach, the most common causes of the breach and what measures are put in place to prevent a future breach based on lessons learned. We also compare the prevention practices of organizations that had a breach to those that have been spared. This independently conducted study queried a representative sample of 702 adult-aged respondents who are presently employed within U.S. organizations.

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