Previous Page  15 / 44 Next Page
Show Menu
Previous Page 15 / 44 Next Page
Page Background

is a checklist of provisions that should be negotiated in a war-

ranty section, and (4) what is a general checklist of provisions

that should be included in a warranty section.

L i censor ’ s ob j ec t i ves i n a War r an t y


Licensors typically want to limit what they promise in their

warranties as much as possible, and some limit their warran-

ties to the most restrictive warranty possible, which is an “as-

is” warranty — “The Software is provided ‘as-is’ without any

warranties”. This type of warranty should never be accepted,

and a warranty like this should always be negotiated for greater

protections and promises that the software and services will


L i censee ’ s ob j ec t i ves i n a War r an t y


At the very least, the licensee’s objective in the warranty section

should be the following warranties:

• Title:

That the licensor owns the software or, at least, has

a license to use it.

• Performance:

Simply, that the software will work.

• Virus:

That the software does not contain any harmful


However, there are risks in seeking the bare minimum war-

ranties listed above. When most licensees see these general

warranties, they usually do not negotiate more than what is

listed here. Remember, the warranty section is the contract pro-

vision dealing with how the software will performand how the

services will be performed. These are very important concepts

because a whole host of things can go wrong (e.g., there could

be errors, downtime, or failure to perform, etc.).

Additionally, licensees must realize that software is an integral

part of how a company does business. If the software does not

perform in the way the licensee expects, or wants, then it can

have detrimental effects to the bottom line of the business.

Therefore, there must be a systematic checklist that a licensee

can review to make sure they are negotiating the warranty sec-

tion correctly.The following is a list of questions that should be

answered by a licensee who is negotiating the warranty section.