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ARTICLE · 13 FEBRUARY 2014

Beware IBM Acquisitions And Product Transitions

IBM software licensing can be a very complex knot to untie.

United StatesIntellectual Property

IBM software licensing can be a very complex knot to untie. While IBM does develop new products in house, many of its most popular offerings (Cognos, Tivoli and ILOG, to name a few) are the result of its active history of acquiring smaller publishers and then continuing to offer their products under the IBM brand. As a result, those publishers' licensing metrics sometimes are incorporated (at least for a time) among the myriad other IBM metrics under which IBM licenses its products. (A description of different IBM license types is available here.)

Compounding the complication is the problem that arises when owners of licenses for products published prior to an IBM acquisition seek to expand their use of those products or to prove their license positions in the event of an audit. In some circumstances, IBM in the past has offered those licensees the option of acquiring additional, "legacy" licenses under the metrics that applied prior to the acquisition. However,

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