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Reilly & Co advises Software Developer on licensing of proprietory software into a Multinational

One of the main problems was that the multinational in question were using a standard agreement that was not suited to the particular task at hand, not least because it was the size of a Russian telephone directory !

I managed to have the original agreement replaced with a slimmed down version of the same which saved the client (and the multinational) time and money –  there were the usual problems surrounding insurance types and levels, warranties and indemnities as well as other contractual and some commercial issues but the interesting point here related to the use that the multinational could make of third party software under the agreement – part of the problem many times is that a standard agreement gets re-negotiated in previous deals and the content of the “original” agreement sometimes gets forgotton in the re-writes – in this case the use to which third party software could be put to was just not accceptable and would have put my client into conflict with his existing software partners and licensors – in most cases sensible negotiation is the way forward but it is also good to agree certain “red line issues” with the client in advance being those parts of the deal that cannot be moved on – in this case, we could not move because to do so would have meant that the client would have breached existing licence and other agreements and the multinational knew that, so, in the spirit of trying to get a proper deal done with the minimum of fuss they agreed to strike out their provisions and “move on” – this particular deal had the capability to become difficult but the parties remained practical thoughout which meant we got it done quickly and with the minimum of fuss and with boths sides happy with the outcome.

If you have any contractual issues then please call us to have a no obligation chat – we have years of practical and commercial experience in dealing with contracts and their negotiation – 023 88 21919 or 085 252 9483 (David Reilly, Principal).


David Reilly

We specialise within the area of Commercial and Technology Law and if you wish to discuss any of the above please call us on 023 99 21919 or on 086 252 9483 or email us on [email protected] – we regularly advise on software and all types of commercial and IT contracts.