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

BE AWARE OF EXPORT CONTROL

Specific rules and regulations govern the use and distribution of software outside of the United States, with special attention given encrypted software and software designed for military use. These laws also apply to the use of the technology by persons who are not United States citizens. Penalties for violating these rules are substantial, so it is important to understand how these export control laws may restrict the ability of your business to make use of software, and to make sure that the vendor has obtained all clearances necessary to allow your business to make use of the software wherever it is necessary and by whomever it is necessary to use the software for the business. This is especially important if your business has a high level of foreign interaction, such as foreign travel or employment. Standard license agreements often include provisions restricting a licensee from exporting the software in violation of any of export control laws, requiring licensees to obtain any necessary licenses or governmental approval prior to any export activities, and even mandating that licensees provide notice of the need to comply with these laws to any other entity using its licensed technology. Vendors should help make sure their customers are aware of what the export control restrictions if any are on the use of the software. You might also request that the vendor provide you with the specific export classification for the software that allows it to be used outside the United States. The vendor should warrant that the software as provided to the licensed customer fully complies with all export control regulations and provided assurance that customer can use the software as it deems necessary.

47

Made with FlippingBook - Online Brochure Maker