IT Procurement: Improve Software Contract Terms and Conditions by Developing a Software Contract Checklist

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Summary

IT procurement professionals should develop a checklist of standard terms and conditions to be included in license agreements for traditional licensed software. This research includes a checklist of some of these terms and conditions, including examples illustrating the areas of risk.

Table of Contents

  • Analysis
    • What You Need to Know
    • Definitions
    • License Grant
    • Payment Terms
    • Usage and Access Rights
    • Right to Use Outsourcers
    • License Metric Description and Examples
    • Protection for Product Name and Metric Changes
    • Capacity Increases/Decreases
    • Platform Portability
    • Maintenance and Support Entitlements
    • Maintenance Increase Caps
    • Removal of Licenses From Support
    • Rights to Future Versions and Enhancements
    • Software Antivirus Warranty
    • Acceptance Criteria
    • Merger/Acquisition/Divestiture
    • Clarification of Audit Rights
    • Failover
    • Disaster Recovery
    • Confidentiality and Nondisclosure Clauses
    • End-of-Term Rights and Protection
    • Cancellation Terms
    • Dispute Clauses
    • Include "At No Additional Cost" Provisions
    • Customer Developed Software Contracts
    • Conclusion
  • Recommended Reading
© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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