"In one recent deal we were left with the thorny problem of
Indemnity and who pays for it. Typically, if you are using
proprietary code you are buying a pig in a poke (buying something
in a black sack that the vendor says will do the job). The case of
indemnity arises if a patent troll claims ownership and then sues
the user for a multi-million dollar sum. The legal team then refers
to the contract and points the troll's complaint at the software
vendor who defends the claim (on the basis they know what's in the
software and where it came from because they "own" it.)
"Now, it gets more complicated when companies acquire companies
who acquire other companies who may have mashed together their apps
over time. The enterprise needs to make sure it is not open to
legal risk yet this places the burden of cost for defence and code
parentage on the vendor - another cost that would need to be borne
by Open Source vendors when dealing with the Enterprise."
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