Key Provisions In Software Settlement Agreements

The end of the year is a busy time for software publishers and entities like the BSA | The Software Alliance ("BSA") and the Software & Industry Information Association ("SIIA") to resolve an audit target's copyright infringement dispute by entering into settlement agreements. While it may be advantageous for a company to reach a quick resolution by the end of the year in order to resolve any outstanding disputes or potential monetary penalties, it is critical not to rush through settlement without carefully considering provisions in a draft settlement agreement.

The following are a few provisions that should be carefully considered before executing an agreement.

• Release of Liability. The release of liability is arguably the most critical provision in a settlement agreement because without it, a company is still exposed for any potential copyright infringement claims. These provisions should be read very carefully because software publishers sometimes limit the