Legal Question in Intellectual Property in New York

Intellectual Property use

I built a website and bought a database software package to use on the site. According to the license I must keep the software on one domain, which I've done, along with adhereing to all the other terms. I recently posted our website business for sale on eBay classifieds. The owner of the software I purchased a lisense for reported to ebay that I am re-selling his software. My question: If I purchased his software...use it on my website...then offer my website for sale (which would be a corporate exchange of shares...not a transfer of license, etc.) does he have a right to have eBay remove my ad? If so, do I have grounds to file suit against his company for impeding the sale of my business...I have currently lost my posting. (I have begun proceedings with eBay to investigate) Your thoughts are appreciated.


Asked on 4/23/08, 11:39 am

2 Answers from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Intellectual Property use

Depending on the terms of the license between you and the database developer, he may have the right to stop an eBay sale of your website.

Software is an odd-duck thing. The database owner actually owns the software code; you as the end user merely license the use of the code from him. You don't own the code, you can't sell the code (since you don't own it), and you may or may not be able to transfer your license in the code or to sublicense the code. The problem is that software is very, very easily copied and fraudulent use of code is very, very easy to accomplish.

You may have to sell your business without the database code and tell the buyer to contact the developer themselves.

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Answered on 4/23/08, 12:30 pm
Christopher Hoyt The Law Offices of Christopher W. Hoyt

Re: Intellectual Property use

The simple answer is you would need to review your original license agreement to see if it deals with your ability to assign the software license to other parties. It would be best to have an attorney review this agreement, so that you may determine what rights you have. Please feel free to contact my office if we may be of any assistance.

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Answered on 4/23/08, 1:46 pm


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