The possibility that a critical software provider could become insolvent or enter bankruptcy is one of the risks organizations should consider when negotiating software license agreements and developing business continuity plans.
Technology attorney Marcus Harris of Taft examines this issue in his article, “What If Your Software Provider Goes Bankrupt? Navigating Section 365(n) and Software Licensing Agreements.”
The article discusses the protections available to software licensees under Section 365(n) of the U.S. Bankruptcy Code and important considerations when structuring software licensing arrangements in anticipation of a potential vendor bankruptcy.
The subject is particularly relevant to source code escrow. Organizations that depend on mission-critical software should consider not only their contractual rights following a vendor failure, but also whether the software, source code, documentation, and other materials necessary to exercise those rights will actually be available.
Read the full article:
What If Your Software Provider Goes Bankrupt? Navigating Section 365(n) and Software Licensing Agreements
About the Author: Marcus Harris is a Partner at Taft whose practice includes software licensing, technology transactions, intellectual property, and related matters.
InnovaSafe provides this link as an educational resource for organizations evaluating software escrow, technology risk, and business continuity. The linked article is authored by Marcus Harris and published by Taft.