Reorganizations and licenses

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As the global economy exits the recent economic downturn and businesses go through more reorganizations, mergers and acquisitions, companies must not forget the importance of the information technology licenses in these transactions.

A review of these agreements is critical, whether the company is undertaking an internal reorganization or involved in acquiring another company. A failure to properly consider the legal nuances of these license agreements could not only result in the loss of the use of the technology, but also liability for infringement of copyright or patent rights.

Whenever an internal reorganization or an acquisition occurs, the information technology licenses must be analyzed to determine the impact of these changes.

Even an internal reorganization, such as in the Cincom case, may trigger a breach of the license agreement and cause infringement liability for the licensee.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Alan Wernick, FSB FisherBroyles, LLP | Attorney Advertising

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