|
PART
ONE |
SOFTWARE
DEVELOPMENT & LICENSE AGREEMENTS |
1 |
|
Section 1. |
The
Negotiating and Contracting Process |
1 |
|
A. |
Review Your
Marketing Literature |
1 |
|
B. |
About Form
Agreements |
1 |
| C. |
About Custom
Negotiated Deals |
1 |
| D. |
Engagement
Letters |
2 |
| E. |
Non-Disclosure
Agreements |
2 |
| F. |
Teaming
Agreements |
2 |
|
|
|
|
Section
2. |
Issues
in Development & Licensing Transactions |
3 |
|
A. |
Project
Staffing Issues |
3 |
|
B. |
How Good
Software Design Affects Legal Issues |
4 |
|
C. |
Progress
Reports |
5 |
| D. |
Testing &
Acceptance |
5 |
| E. |
Understand
Your Pricing Dynamics |
6 |
| F. |
Cash Flow
Matters |
7 |
|
-- Late
Payment Syndrome |
7 |
|
-- Trickle
Down Theory |
7 |
|
--
International Issues |
7 |
|
-- Revenue
Recognition |
7 |
| G. |
Ownership of
Work Product |
8 |
|
1. Time
of Conveyance |
8 |
|
2.
About Reusable Code Libraries |
8 |
|
(a)
Code Licensed from Library for Customer's Use |
8 |
|
(b)
Code Licensed into the Library for Future Projects |
9 |
| H. |
Granting
Exclusive Marketing Licenses |
9 |
|
1.
Geographical or Vertical Market Limits |
9 |
|
2.
Minimum Performance |
9 |
|
3.
Channel Conflict |
9 |
|
4.
Support Issues |
10 |
|
5.
Minimum End-User Terms |
10 |
|
6.
Electronic Restraints |
10 |
| I. |
Confidentiality |
10 |
| J. |
Warranties |
11 |
|
1.
Non-Infringement Warranty |
11 |
|
2.
Express Warranties |
11 |
|
(a)
"Casual" Express Warranties |
11 |
|
-- Review Advertising Collateral |
11 |
|
-- Watch Post-Signing Reassurances |
11 |
|
-- Beta Versions |
11 |
|
(b)
Formal Express Warranties |
12 |
|
3. The
Implied Warranties |
12 |
|
--
Merchantability of Software Programs |
12 |
|
--
Information Content |
12 |
|
--
Licensee's Particular Purpose |
12 |
|
--
System Integration |
12 |
|
4.
Disclaiming or Modifying the Implied Warranties |
14 |
|
5.
Invalidation of Warranties by Software Code Modifications |
15 |
| K. |
Overview of
Liabilities |
15 |
|
1.
Contractor Damages |
15 |
|
2. Customer
Damages |
15 |
| M. |
Remedies |
17 |
|
1. Limitation
of Remedies |
17 |
|
2. Failure of
Essential Purpose |
17 |
|
3. No
Rewriting of Agreements |
18 |
|
4. Carve-Outs
for Certain Liabilities |
18 |
|
5. The Right
to Cure |
18 |
| N. |
Assignments
& Transfers of Contracts |
18 |
|
1.
"No Assignment" Clauses |
19 |
|
2. Absent an
Agreement |
19 |
| O. |
Electronic
Regulation of Access, Use and Repossession |
19 |
|
1.
Online Access Contracts |
19 |
|
2. Electronic
Usage Restrictions |
19 |
|
3. Self-Help
Repossession on Cancellation for Breach |
21 |
|
(a)
Physical Repossession |
21 |
|
(b)
Electronic Repossession |
21 |
|
P. |
Entire
Agreement Clause |
22 |
|
|
|
|
SECTION 3. |
Important
Issues for International Transactions |
23 |
| A. |
IP Protection |
23 |
| B. |
Governing Law
& Forum Clauses |
23 |
|
1.
Governing Law |
23 |
|
2.
Governing Forum |
23 |
|
3.
Arbitration Provisions |
24 |
|
4.
Export Restrictions |
25 |
|
5. Foreign
Corrupt Practices Act |
25 |
|
6.
Country-Specific Issues |
25 |
|
--
United Kingdom |
25 |
|
--
Germany |
28 |
|
--
France |
28 |
|
--
Netherlands |
29 |
|
|
|
|
PART TWO
|
SOFTWARE
SUPPORT AGREEMENTS |
30 |
| A. |
Software
Support Agreements Under UCITA |
30 |
| B. |
Understanding
Different Types of Software Support Transactions |
32 |
|
1.
Packaged Off-the-Shelf Software |
33 |
|
2.
Packaged Core Software with Customizations |
34 |
|
(a)
Core Software or Customized Software? |
34 |
|
(b)
Customizations by Licensor or Consultant? |
35 |
|
3. Support
for Custom Developed Software |
37 |
|
(a)
Project Staffing Issues |
37 |
|
(b)
How Good Software Design Affects Support |
37 |
|
(c)
How Testing and Acceptance Effect Support |
38 |
|
(d)
How Confidentiality Restrictions Affect Support |
39 |
| C. |
Other Key
Software Support Issues |
39 |
|
1. What
is an "Error" in the Software? |
39 |
|
2. Know
the Types of Software Releases |
39 |
|
3.
Understand the Different Levels of Support |
40 |
|
4.
Service Hours of Support |
41 |
|
5.
Classification of Support Calls |
41 |
|
6. Some
Typical Support Case Classifications |
42 |
|
7. The
Importance of Defining "Response Times" |
42 |
|
8.
Using Escalation Procedures to Attract Needed Attention |
42 |
|
9. Certain
Licensee Responsibilities |
43 |
|
10. Service
Level Credits |
44 |
|
11. Minimum
Period of Support |
44 |
| D. |
How Revenue
Recognition Rules Affect Support Contracts |
44 |
|
1.
License Fee Revenue Recognition |
44 |
|
2.
Post-Contract Support Revenue Recognition |
46 |
