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The indemnification most requested by licensees is an intellectual property indemnification provision.Licensees typically look for broad-form indemnification, defense and hold harmless provisions relating to any third party claims made against the licensee’s use of the software.In some software licensing agreements, licensees will negotiate acceptance testing provisions with specific remedies if the software fails to conform or perform according to designated criteria.Licensors resist acceptance testing and typically take the position that their performance or conformance warranty is all that is needed.In other situations, the software license agreement is not or cannot be negotiated, in whole or in part.
In researching this post, I came across a number of recent reports on Henry Nicholas III, the once high-flying CEO and cofounder of Broadcom. While the story was enthralling, I didn't understand what any of it had to do with a federal investigation into stock option backdating.This is messing up my reporting and is incorrect as the invoice was generated (by another program) and paid in October, 2013.One would think that it's as simple as clicking on the date in the report to change it but when I get to the editing screen for the invoice, the 10/12/13 date appears, not the date the invoice was created.The allegations of illicit sex, drugs, and rock and roll reminded me of the 60s ... Sure, Broadcom had to take a .2 billion charge to fix the accounting mess left by the company's former executives.But how does that relate to hiring prostitutes and drugging customers without their knowledge?
Drafting such an agreement involves planning for and potentially addressing a wide range of technical, economic and legal issues. Software license agreements vary as much as the software they relate to, and software and software license models are constantly changing and evolving.