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......

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)......

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 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......