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Is Your Affiliate Licensed Under Your Microsoft Agreements?

By Stephanie Robinson

Entering into a Microsoft Enterprise or Select agreement can be an effective way for companies with large and predictable software needs to reduce IT costs. However, Enterprise and Select agreements may include restrictions on an affiliate?s ability to use software licensed under those agreements. Additionally, the flow of documents over the course of a Microsoft agreement relationship may create confusion regarding the current terms of the agreements and may end up steering a company in the wrong direction relative to its software asset management objectives. Most Enterprise and Select agreements contain specific provisions determining whether the signing company?s affiliates also may use the software licensed to that signing company. If the affiliates are not specifically included in the agreement , then a significant amount of software intended for use by the affiliate may be out of the affiliate?s legal reach. Additionally, even if some affiliates are included at the outset, it is common for a Microsoft licensing agreement to exclude affiliates that are acquired after the agreement is signed. If such a provision is in place, only the affiliates owned by the signing company at the time the agreement is signed may use the software. If you renew a Microsoft agreement relationship that is based on a history of prior agreements, you should review the current agreement to confirm that it is consistent with prior terms. Getting lost in the document soup of many years? worth of agreements potentially can be damaging for a company that does not track its license agreements with precision. Before you sign a Microsoft Enterprise or Select agreement, you should work with an independent, knowledgeable licensing consultant or attorney experienced in evaluating Microsoft agreements and advising companies on whether those agreements fit with the business? objectives.

Full post as published by Business and Technology Law on November 11, 2010 (boomark / email).