Top Three Challenges in Standard IBM License Agreements

Christopher Barnett  Comments (0)
IBM software licensing can present an array of interpretive and compliance challenges for even the most sophisticated licensees. Here are three of the most important things to keep in mind when planning to license IBM products under the company’s standard-form agreemen......

IBM’s Standard Audit Clause is a Time Bomb

Christopher Barnett  Comments (0)
It is standard practice for software vendors to include clauses in their license agreements giving the vendors the right to invoke audits or some other mechanisms to ensure that the licensed products are used in a way that is consistent with agreed licensing restrictions......

Avoid Pitfalls When Deploying ILMT for IBM Software

Christopher Barnett  Comments (0)
IBM software is expensive. In some cases, very expensive. While this may represent a necessary cost of doing business for many companies with mission-critical software solutions developed on or using IBM applications, all IBM customers clearly are incentivized to maximiz......

Settlement Structuring for IBM Audits

Christopher Barnett  Comments (0)
Software-compliance audits initiated by IBM can be extremely burdensome and time-consuming and can force companies to face challenges that are somewhat unique among major-publisher audits. For one example, a significant component of IBM’s business model is the acquisitio......

An Audit by Another Name: IBM’s new IASP Program

Julie Machal-Fulks  Comments (0)
This year, IBM announced that it was going to present certain customers with the opportunity to participate in its new IBM Authorized SAM Partner Services (“IASP”).  In a recent webinar that it co-presented with KPMG, one of its approved IASP partners, IBM described t......

Be Wary of Certain ISV and Embedded Software Agreements

Christopher Barnett  Comments (0)
It is common for software solution providers to use third-party products to support the functionalities those providers have developed for their solutions. For example, a network-monitoring solution may incorporate IBM Cognos functionality, or an accounting solution may in......

IBM’s Audit Rights Take a Turn for the Worse

Christopher Barnett  Comments (0)
The software-audit language contained in IBM’s standard license agreements never has been anything that anyone would mistake for customer-focused or even very fair contract terms. However, in August 2014, IBM released a new version of its Passport Advantage Agreement (PAA)......

Beware of IBM’s “Blue Washing”

Christopher Barnett  Comments (0)
Fans of Star Trek likely are familiar with the dreaded Borg – an alien race of cyborgs that survives and swells its ranks primarily by conquering other races and then absorbing them into the collective through brainwashing and physically altering them with Borg-y bionic bo......

Varicent Customers Should Plan for Audits by IBM

Christopher Barnett  Comments (0)
In April 2012, IBM announced that it had reached an agreement to acquire Varicent Software, Inc., an Ontario-based publisher of analytics software for compensation and sales performance management. According to the announcement, Varicent’s customers include Starwood Hotels......

IBM Software Audit Step Number 1: Read the Contract

Christopher Barnett  Comments (0)
When first contacted by IBM for a "compliance review" (read: software audit), many business owners simply assume that the scope of the requested audit is within IBM’s rights under applicable licensing agreements. Alternatively, if they do request that IBM identify the basi......

IBM Software Audits Involve Complex Licensing Rules

Christopher Barnett  Comments (0)
Business owners and managers whose companies have been targeted by IBM for a compliance audit often express surprise at the complex method IBM uses to determine the licensing requirements for many of its server software products, such as WebSphere and Tivoli. Many software v......

IBM Initiates Expansive Compliance Audits

Rob Scott  Comments (0)
IBM has begun a comprehensive program of compliance audits of its software clients. Scott & Scott’s clients have begun receiving letters from IBM Software Compliance demanding cooperation with a “routine assessment” of the client’s deployment of IBM software. Acc......

Beware IBM Acquisitions and Product Transitions

Christopher Barnett  Comments (0)
IBM software licensing can be a very complex knot to untie. While IBM does develop new products in house, many of its most popular offerings (Cognos, Tivoli and ILOG, to name a few) are the result of its active history of acquiring smaller publishers and then continuing to o......