Customer Indemnity

Software publishers that try to require an indemnification clause from their customers for use of the publisher's software are often met with resistance. Providing software generally creates a risk to the customers that buy the software. But there are several occasions where an indemnity provision indemnifying the publisher for the end-user's use of software may be appropriate because it creates a risk to the publisher or supplier.

• Misuse of the software
  Customers may create a risk for the publisher or supplier of software if the customer misuses the software in a way that could create third-party claims. For such an indemnity to be appropriate, or even acceptable by a customer, the permitted uses for the software should be clearly included in a license agreement.