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InfoWorld: The licensing game

Aug 08, 2000, 21:13 (2 Talkback[s])
(Other stories by Jessica Davis)

[ Thanks to Paul Eggert for this link. ]

"'The rise of the Internet is the cause of these new laws,' says Skip Lockwood, Washington-based coordinator of the Digital Future Coalition (DFC), an organization dedicated to intellectual property issues, and 4CITE (For a Competitive Information and Technology Economy), a coalition formed to either reform or oppose UCITA. 'We are dealing with companies that are not used to the Internet and they are terrified of it.'"

"The law makes it possible for a publisher to prohibit a customer from transferring the license to another party without their permission. For example, if one company acquires another, the acquiring company does not get the software unless the software maker approves the transfer. Klein has seen at least one license agreement specifying that sale of more than 50 percent of a company shall be considered a transfer of license."

"'I bought Corel Linux's backup and recovery utility,' Klein says. 'Their license has this provision. I was flabbergasted when I saw it.'"

"To avoid many of UCITA's provisions, IT executives must tread carefully when negotiating software license agreements."

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