4 See “2012 Key Trends in Software Pricing and Licensing Survey,” 2012, available www.softwaremag.com/DSN/wwwswmagcom/Content/ClientAssets/Flexera_WhitePaper2.pdf, page 38. 45% of respondents were in the United States, 33% in Europe and 7% in Australia. In terms of annual revenue, 14% of the companies surveyed had less than $100 million in sales, 17% between $101 million and $999 million in revenue, 23% between $1 billion and $3 billion in revenue, 31% had $3 billion or more in revenue and 16% did not generate annual revenues. Christopher represents clients in a wide range of business, intellectual property and IT rights, with issues related to trademark registration and application, software and licensing litigation, and mergers, divestitures and service transactions. Christopher`s practice involves considerable attention to the concerns of media and technology companies and to disputes with new media, especially fast-changing content on the Internet. According to results published on Gartner.com, 68% of companies can count on at least one software audit next year. Rarely is an organization reviewed only once, many report that it is audited several times a year. After the parties have agreed on the scope of the audit and the timetable, the software provider or a third-party company established on its behalf conduct the review, or representatives of the sector group conduct the review. When the audit is conducted by a third party on behalf of the seller or by industry representatives, the controlled entity should negotiate and enter into a confidentiality agreement with the third party concerned to ensure that any proprietary information disclosed to the third party during or in connection with the review process remains strictly confidential. The legal auditor should, of course, have the right to disclose the results of the audit to his client; However, it is important that the controlled organization reserves the right to verify and comment on audit results before they are submitted to the software provider.
Convor a meeting with all stakeholders to achieve a clear understanding of individual responsibilities during the review. Designate a representative from each team or department that must be involved and write down participation in future meetings on a mandatory basis. These representatives will be the interlocutors of their teams when it comes to providing all relevant data in a reactive manner. Finally, but not least, licensees should consider including in the software license agreement an obligation of the software provider, keeping royalty records and reserving the right to verify those records, particularly when the software provider provides professional services under the license agreement in connection with the software conceded or if the agreement contains a preferred price clause.