Software licenses contain standard provisions limiting the liability of the vendor. Typical provisions have a two-tiered structure that: (i) disclaims liability for lost profits, incidental, consequential and indirect damages, loss of good will, data loss, computer failure, or punitive damages; and (ii) places a limit on overall damages under the contract (usually limited to fees…
Negotiating software licenses is a complicated process that takes knowledge and skill. Changing technology and new methods for software development and delivery have changed the game. The consequences of getting it wrong can be severe. This webinar will focus on understanding software licenses, their legal background and how to maximize your rights while minimizing your…
Thursday, June 27, Canadian software-holding company Pan-Afric Holdings Ltd. sued Ernst & Young LLP in U.S. District Court in Maryland for over $10 million in damages, claiming the accounting giant made mathematical errors in preparing a software valuation report on which Pan-Afric detrimentally relied. In 1993, for $5 million, Pan-Afric purchased an interest (including all…
One of the biggest mistakes we see clients make when they are negotiating a software license agreement with SAP is that they focus solely on pricing and discounts to the exclusion of other important issues contained in the SAP software license agreement. Focusing solely on pricing while ignoring the other terms and conditions contained in…
From the ERP and More! Blog – the top 7 ERP Implementation Analogies: 1. The implementation will be like open heart surgery while the patient is still alive and working. 2. An ERP implementation is like the corporate equivalent of a brain transplant. 3. I think of ERP implementations like mountain climbing: No two are the…
This is the first in a series of posts dealing with the SAP contract negotiation process. SAP’s market dominance often leaves customers with little negotiating leverage. Companies that have a well developed negotiation strategy, an understanding of SAP’s typical concessions, pricing structure and contractual “pain points,” greatly increase their chances of successfully negotiating with SAP. The…
On June 12, Marcus Harris spoke to members of the Distribution Solutions Council (DSC) on software licensing and how to use the contract negotiation process as a competitive differentiator. The DSC is an industry round-table of software executives with an interest in serving the distribution marketplace, exploring new ideas beneficial to the industry and discussing best…
In February of this year SAP eliminated its low cost maintenance option leaving new customers with a maintenance option priced at 22% of software license fees. With the influx of SASS and third party providers like Rimini Street, SAP’s 22% increase seems counterintuitive. SAP’s maintenance increase, though, brings it in line with Oracle – which…
SAP recently reported a steeper than expected drop in Q1 profits. SAP was apparently impacted by acquisition related costs, the weaker dollar and delayed investments on new software. If you are currently involved in a software acquisition with SAP, now may be the time to aggressively seek concessions as SAP may be more willing to negotiate in…
Matt Karlyn, an associate at Foley & Lardner in an article on SearchCIO.com states that “it is critical to make sure that the license grant [in a software license agreement] aligns precisely with how your company intends to use the software being licensed.” The scope of the license grant, as Karlyn suggests, is easily one…