Software Licensing Agreement Legal Issues

The licensee should have the right to disclose or make available to its employees and representatives, but also to independent contractors it retains, as well as consultants and possibly directors, investors and acquirers (subject to confidentiality in all cases). Sometimes disclosure must be made to the licensee`s accountants and, in the case of banks, to its auditors and supervisory authorities. Ideally, the lessee`s obligation of confidentiality would be limited to informing those persons that the disclosure is confidential or, at most, requiring such persons to respect confidentiality (without necessarily requiring agreements signed by all). Whenever possible, avoid being explicitly responsible for privacy breaches by third parties (including supervisory authorities and professionals) with whom you may share information. The agreement should also provide for appropriate remedies, such as injunctions, as the reimbursement of money is not always appropriate in the event of an infringement. Developers are increasingly using open source components in their products. A problem can arise when a licensee obtains modification and sublicense rights from parts of a program containing open source code, especially open source licenses under the GPL (or other similar "viral" open source licenses). Open source licensors who follow this model require licensees who distribute software containing such open source code to freely license the derivative product, even if it consists primarily of otherwise proprietary code (although there is still some discussion about the breadth of these enforceable clauses). .

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