Software audits are significant legal and financial risks for all companies. With more and more software publishers utilizing intrusive audits and other information-gathering exercises as the basis for licensing transactions and – more troublingly – as sources of revenue through compliance-enforcement actions, more of our clients are implementing detailed policies to define whether and how…
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…
In response to continued customer concerns about how to license for access to SAP products by third parties or by processes, SAP announced that it was offering a new pricing model based on indirect access. Customers using SAP S/4HANA, SAP S/4HANA Cloud, and SAP ERP solutions should carefully evaluate the new license model offered by…
As software audits increasingly become a way for software publishers to increase revenue, it is more important than ever to ensure that after a company has invested effort into resolving an audit, the company does not jeopardize the value of the release of liability. The following are suggestions for on how to identify, negotiate, and…
In order to effectively manage their software usage and to mitigate compliance exposure, companies need to know how to gather and analyze information regarding their product usage. While some software products may have unique data-collection requirements that ordinarily would not be applicable for other products, usage levels for many products can be measured using a…
Of the many complex licensing arrangements Oracle offers to its customers, none seem to generate as much confusion and consternation as the Unlimited License Agreement (“ULA”). For companies that have already determined that they are not going to renew their ULAs with Oracle, the following are a few guidelines to follow to minimize the risks…
In order to effectively manage their software usage and to mitigate compliance exposure, companies need to know how to gather and analyze information regarding their product usage. While some software products may have unique data-collection requirements that ordinarily would not be applicable for other products, usage levels for many products can be measured using a…
If you provide commercial hosting services using Microsoft’s Service Provider License Agreement (SPLA), you may become a target of an ever-increasing variety of license audits from Microsoft and its vendors. The latest flavor of a Microsoft SPLA audit is the verified self-assessment or VSA. The SPLA verified self-assessment differs from both the independent audit and…
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…
One of the tasks with which Scott & Scott’s clients most commonly request our assistance is how to conduct a software audit. While almost all companies, large and small, use software in order to conduct their business operations, many of those companies lack mature or even nascent software asset management practices. Consequently, when asked to…
If your company licenses products to third parties under the Microsoft Service Provider License Agreement (SPLA), you may receive a request to perform a self assessment and provide a certification of compliance to Microsoft. The SPLA self-assessment audit is a new audit flavor that is unlike the independent audits Microsoft has historically used to audit…
Over the last several years, more and more Oracle customers are receiving notices that they have been selected for an Oracle license review or software audit that it reviews the license position of all of its customers worldwide. That means if your company has not participated in a software license review with Oracle, the odds…
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…
If your business receives an inquiry from Oracle requesting that you complete an Oracle Server Worksheet, you should proceed with caution. Answering the question without consulting a licensing expert and carefully evaluating the relevant license agreements can result in increased licensing fees, possible audits, and penalties. Before responding to an Oracle inquiry, it is important…
Microsoft’s Services Provider License Agreement (“SPLA”) is a popular licensing framework for businesses delivering hosted or rented software solutions to their customers. However, as with many software license agreements pertaining to resale or other business channel partnership programs, the SPLA typically includes audit rights language giving Microsoft the ability to review a SPLA partner’s records…
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…
Many of our clients have been contacting us in recent weeks (mid-late 2017) regarding notices they received from Microsoft requesting an internal self-assessment of their license positions under their Services Provider License Agreements (SPLAs). Naturally, many of those clients have questions about that process and the ramifications of cooperating with Microsoft. For those who may…
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…
Oracle’s “Technology” software products (such as its WebLogic and Database programs) are very popular products. Unfortunately, as we have explained numerous times here, Oracle’s license agreements and compliance practices entail numerous pitfalls for unwary users of those products. Being caught in one of those pitfalls can result in substantial, unforeseen expenses following an audit by…
Don’t be in the dark on how to prepare and respond to software audits. An increasing number of companies face software audits initiated by software publishers and their trade associations, such as BSA | The Software Alliance and the Software & Information Industry Association. Most companies are totally unprepared; many underestimate their exposure and are…
