Typical service provider agreements are usually drafted by the service provider, and at least early during the negotiation phase, will likely try to shift much of the legal risk to the customer. In these types of business transactions, the customer is often seeking a “turn-key” solution for management of its technology needs. Depending on the level of outsourcing contemplated, the service provider may be installing software applications for the end user, and installation of software on computers that is not licensed could expose the end user to significant legal and financial liability.
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