Software License Agreements: A Practical Guide

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BLG is a leading, national, full-service Canadian law firm focusing on business law, commercial litigation, and intellectual property solutions for our clients. BLG is one of the country’s largest law firms with more than 750 lawyers, intellectual property agents and other professionals in five cities across Canada.

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Computer software is an essential tool for almost every organization. Businesses and other organizations use computer software to create products, perform services, manage relationships.

Canada Media, Telecoms, IT, Entertainment

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Computer software is an essential tool for almost every organization. Businesses and other organizations use computer software to create products, perform services, manage relationships, control internal operations, and process and store sensitive and regulated data. Almost every organization procures and uses various kinds of computer software and ancillary services provided by numerous software vendors/service providers.

The use of software and related services can present the customer with potentially significant business risks and legal liabilities, which should be addressed in the applicable software license agreement. Consequently, a prudent customer, with the benefit of legal advice, will carefully review each software license agreement and attempt to negotiate required revisions so that the agreement is appropriate and reasonable in the circumstances.

BLG's Software License Agreements – A Practical Guide, written by Bradley J. Freedman, explains the important provisions commonly included in software license agreements and provides practical guidance for software procurement.

Topics include: software procurement; the software license; warranties and disclaimers; acceptance testing; maintenance, technical support and problem resolution; fees and related matters; object code and source code; general indemnity; IP infringement indemnity and remedies; confidentiality obligations; remedy restrictions/liability limitations and exclusions; term, suspension and termination; consequences of expiration/termination and surviving rights and obligations; governing law and dispute resolution; boilerplate provisions; and contract interpretation principles.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.