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Van Doorne Newsletter March 2008      
 
 
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Information Technology

Intellectual property software often source of problems in tender procedures

The rights of the various parties to a sourcing contract are often neglected. For instance, who has copyright on the software?

In a simple instance, where software is concerned, there are at least three parties involved: the customer, the sourcing service and the software supplier. The software supplier, who commonly owns copyright on the software, may refuse to co-operate with the out-sourcing if rights have not been discussed properly. Alternatively, the supplier may demand a substantial additional fee, a practice termed ‘stiffing’ in the trade. In the most serious cases, the supplier may even take the customer to court for breach of copyright if the legal basis for use of the software has not been properly negotiated. Only by examining the software available at an early juncture, ascertaining to whom the rights belong and what is necessary for the out-sourcing to be a success can these risks be avoided.

Recent developments, such as a decision by the Dutch Supreme Court relating to the fact that the receiver in an insolvency case is not bound by the contract between the parties, or the ‘hype’ surrounding SOA and SaaS (old wine in new bottles?), invite extra attention for IE law in out-sourcing relationships. What has the customer already got? What does the customer need? Last but not least, what does the customer need after the inevitable end of the contract? In a recent article in the Automatisering Gids, Elisabeth Thole and Louis Jonker covered the most significant questions that should be raised in this context if negotiations are not to become muddied.

For more information, please contact Elisabeth Thole or Louis Jonker, Practice Group Information Technology.

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Although this newsletter was prepared with the utmost care, it is only intended to highlight legal issues in general and does not provide for specific legal advice applicable to a specific situation. Van Doorne does not accept liability for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this newsletter and in no event shall Van Doorne be liable for any damages resulting from reliance on or use of this information. Readers should always take specific advice from a qualified professional if and when dealing with specific situations.

 

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