A Legal Guide To TECHNOLOGY TRANSACTIONS A COVID-19 Update…

ASSURE SUFFICIENCY OF USE OF THIRD PARTY SOFTWARE AND OPEN SOURCE

Make sure that the software vendor has the right to pass through any third party licenses, warranties, or rights especially those that are necessary to use any third party software that is linked to or embedded in the vendor software and is necessary for the software to operate. If payments are required for use of third party software make sure that vendor has paid the requisite license fees and that you are authorized and able to use the third party software.

Do you get support from the vendor or directly from the software manufacturer?

Of special concern is the growing use by software developers and vendors of what is known as Open Source (OS) software. Thiscode is widely available and can be instantly downloaded at little or no cost. The OS code is still however covered by OS licenses that vary in what rights and restrictions are imposed on the software developer and user. You might seek a warranty from the vendor that there is no OS software included. If OS is involved it may be difficult to get warranties and indemnities from the vendor. The agreement should also warrant that no additional third party software other than what is specified or provided by vendor is required or necessary to operate the system.

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