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Wilson: Indemnification and Disclosure of Risk

Apr 05, 2005, 23:30 (0 Talkback[s])
(Other stories by Eric Wilson)


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"Generally speaking, common weaknesses in the indemnity model of risk management are:

  • "Universal IP indemnity may support the bulk litigation of smaller companies to obtain potentially market-snatching injunctions, or force up the price of broad settlements under pain of widespread customer disruption.
  • "Universal IP indemnity may in many cases be economically unsustainable by even the largest software makers, if it were ever needed. Indemnities offered without a very sharp increase in software prices should therefore be carefully scrutinised..."

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