Licensees have many reasons that they may have to value a potential software dispute, including but not limited to situations where a publisher has filed a lawsuit, a publisher has otherwise asserted a claim, and the licensee has a business need to evaluate potential liability associated with software licenses. When a need arises, companies must carefully evaluate their license position and the potential costs associated with any deficiencies. Consider these three questions to help guide that evaluation.
1. When does a licensee need to value a dispute? Obviously, when a software publisher has commenced litigation and when the licensee is considering litigation against a publisher, the licensee must value the potential claims. In some instances, licensees need to value a potential dispute prior to litigation when they receive notice from a software publisher that there is a problem. The publisher could communicate the issue a number of ways—via letter, an auditor, a demand from the sales team, or all of the above.
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