Buyer Beware - Licence Agreements
- TJC
- Dec 1, 2016
- 1 min read
It’s important to review a licence agreement before purchasing a product licence for your business. For example, we advised our client, one of the 31 Primary Health Networks established by the Australian Government, on software licence agreements.
They wanted to update their internal payroll and HR management systems and were choosing new software. Before they agreed to anything, they asked our opinion on the software licence agreements.
In our review, we identified that the terms of the software licence agreements were not only unclear and unfair, but also inconsistent with Government standards. We pointed out the unfair terms and suggested amendments. In the end, after receiving our advice, our client did not sign those agreements.
As a result of our advice, our client engaged another software system that had fairer terms for users. They also learned of their bargaining power and in negotiating contract terms as a government organisation.
Our message, beware of software licence agreements, particularly agreements drafted in another country under different legislative requirements.
We are able to advise you on licence agreements, please contact us to engage our services.