Legal Question in Technology Law in California

Software License Agreement

We are an enterprise software company of 1 year old. We license our software (product) to large companies. Given that we are a new kind on the block one of our prospect has a concern about the viability of the company. They very much like our product. Their concern is who will support/maintain in case the company goes out of business. Please suggest what are our other options(from legal contract perspective) besides putting the software in an escrow account to address the viability question. Basically to make the customer feel comfortable with deploying our software. Thanks.


Asked on 2/09/01, 7:48 pm

3 Answers from Attorneys

Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: Software License Agreement

I need a lot more information on your company and product before I can give you an opinion. Send me an email on the real details involved. Thank you,

Michael Cortson

Attorney at law

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Answered on 3/22/01, 5:26 am
Matthew Becker The Law Office of Matthew A. Becker, PC

Re: Software License Agreement

There are certain provisions that can be added to a licensing contract that may help the larger companies feel more comfortable with your abilities. Additionally, you may be able to provide certain incentives for using your company's software. Feel free to call or email me directly for a free consultation. (619) 522-6760 / [email protected]

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Answered on 3/22/01, 11:29 am

Re: Software License Agreement

This sounds like it is a "feel good" type of issue with this prospect. They know that they are taking a risk that you will be able to support their investment. Thus, they want to feel confident that you are going to be there down the line to provide support and not abandon them. You want to give a lot of reassurance to the decision-maker for the prospect that you know what you're doing, are reliable and can provide all necessary support.

You may want to have in your agreement the costs support at such a level that will guarantee that it is worthwhile for you to continue supporting this product. This is a blessing in disguise. You can charge higher support fees and justify them by stating that the higher than normal fee insures that your company will be able to provide the high quality support that large companies, like yours, requires.

I would be happy to discuss this or other legal issues with you.

J. Caleb Donner

LEGAL WARRIORS sm

www.donnerlaw.com

email: [email protected]

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Answered on 3/22/01, 2:48 pm


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