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ARTICLE · 28 OCTOBER 2010

Fifth Circuit Prohibits Software Licensee's Attorney From Using Licensed Software

Can a software licensee allow its attorney to use the software for business purposes for the benefit of the licensee?

United StatesMedia, Telecoms, IT, Entertainment

Can a software licensee allow its attorney to use the software for business purposes for the benefit of the licensee? A recent decision by the Court of Appeals for the Fifth Circuit says no. Compliance Source Inc. v. GreenPoint Mortgage Funding Inc., No. 09-10726 (5th Cir. October 18, 2010) holds that a court cannot look past the actual language of a licensing agreement and absolve a licensee who grants third-party access to use the licensed software merely because that use is on behalf of, or inures to the benefit of, the licensee. The case serves as a cautionary reminder that software licenses may be read strictly to protect against any unauthorized use.

As is common in many software licensing agreements, the agreement at issue here provided that the licensee did not have the right to "copy, make, use, have made, sell, support, or sub-license" the licensed technology except as specifically provided therein. The licensee granted its attorney access to the licensed

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