If you have been audited by IBM, you need experienced counsel to protect your business. Scott & Scott, LLP has a dedicated practice group focusing on defending companies accused of software license violations by IBM. Our lawyers have counseled many businesses in your situation. Our lawyers and technology professionals have the technical and legal skills necessary to vigorously fight for your interests against an IBM audit.
A typical target of an IBM audit will receive a letter from IBM demanding the business’ cooperation in disclosing the number IBM installations on its network and the number of IBM licenses it owns, including serial numbers. An outside accounting firm is frequently engaged to perform a third-party compliance review. The letter may go on to describe the audit process and request a phone conference to “kick-off” the audit.
Targets who receive letters in an IBM audit should treat the matter very seriously. It is important to know your legal rights and protect your legal position before responding to a request for an IBM audit. Additionally, companies who prepare their own responses to IBM without the benefit of counsel and before conducting a thorough investigation may receive an unexpectedly high settlement offer from IBM. We advise our IBM audit clients to ensure that internally prepared license reconciliations are protected by the attorney-client and work-product privileges if possible.
In many cases, IBM demands a settlement payment calculated at the customer���s historical discounted price for the products found to be unlicensed plus back maintenance for up to two years.
When responding to IBM audit requests, you should work with experienced counsel to thoroughly investigate the software usage on your computers, protect yourself by requesting an agreement from IBM regarding the use of the materials that will be produced in the audit, and negotiate a resolution geared toward ensuring future compliance. Our lawyers and technology professionals can guide you through every step of the IBM audit process.
The Legal Risks of IBM Licensing
- 5OctJulie Machal-Fulks, Texas Lawyer, 10/3/16 A law firm’s electronic data can be critical to the firm’s efficiency. If a firm’s electronic information were lost or otherwise unusable, it could hinder or even cripple the firm’s...5OctDan Tynan, InfoWorld, 4/25/16 ‘Truing up’ licenses amounts to billions of dollars in revenue for the major software makers. Here’s where the money goes — and how it’s extracted.
- 30SepMichael O’Dwyer, ipswitch, 9/29/16 If you require software licensing tips, don’t expect your software vendors to be of any real help, given the prevalence of outsourced call centers by many of the world’s global players.29SepBoutique law firm receives Lawyers Worldwide Award for work in Software Disputes & Technology Transactions.
- 19SepMarc Benjamin, The Fresno Bee, 7/24/16 Fresno County paid IBM almost $2.3 million after a software-licensing audit revealed too many workers were using unlicensed IBM software in county departments.12SepStephen F. Pinson, The Licensing Journal, August 2016 A warranty is one of the most important contract provisions in a software contract. The warranty section deals with the performance of the software and what the...
For the third time I have called on you guys to negotiate on our technology company’s behalf. You took the time to understand our business model, where we were going and what we wanted to accomplish. You successfully helped us reach our goal each time. Our company is growing, our profit is up, and we know we can depend on Scott and Scott to be there when we need them in the future. Thank you for being consistent.
I found the firm most knowledgeable in all IT subject matter and the quality of documents prepared was excellent!
Trust and known quality of the work that the legal team does on behalf of its clients and the customer care that they provide beyond legal acumen.
Great work and representation. The result was better than we could have expected.
Thank you for the service you and the team and Scott & Scott, LLP have provided us here at SMART I.T. Services, Inc. It was a pleasure working with you, especially since your service was fast, friendly, flexible and accurate. The fact that you work in our industry and have experience with the issues associated with it, were just icing on the cake!
It is with great and sincere pleasure that I recommend Scott and Scott, LLP. Scott and Scott has done an exemplary job for the Waypoint Solutions Group team, writing and reviewing contracts and developing our information security program and information security incident plan. Having a trusted and competent firm to handle our specific and complex needs as an IT company, allows us to focus on and deliver the highest quality solutions for our customers. Rob Scott and the entire Scott and Scott organization display unparalleled industry expertise and professionalism, and...
Mr. Scott and his team have provided my organization and its over 30,000 members with a wealth of leadership, expertise, and legal advice. When it comes to IT related issues there is no other law firm I would entrust to render advice and counsel to me and my organization. Rob and his firm are at the top of their profession in the Information Technology community. I recommend Scott & Scott to all my clients and friends who are in the business. If you are in the IT profession and need...