IBM further entrenches strong penalties following any discovery of under-licensing in any ‘compliance verification’

22. 12. 2015

IBM CHANGES TO PENALTIES FOLLOWING SOFTWARE LICENCE REVIEW

Recent changes to IBM’s ‘International Passport Advantage Agreement’ have further entrenched strong penalties following any discovery of under-licensing in any ‘compliance verification’.

With effect from August 2014, IBM’s entitlement was extended to state: ‘If Client’s records are inadequate to determine IBM Subscription and Support or Selected Support charges, IBM’s charges for any excess usage will include two years of associated maintenance and IBM Subscription and Support or Selected Support.

Although not strictly a penalty, the commitment (embedded by reference in existing IBM software license agreements) effectively means that an inadvertent user with under-licensing could face demands for arrears of support and maintenance together with the two additional years stated. The price levels are determined by ‘IBM’s then current rates,’ rather than any negotiated discount rates that the user might otherwise have been able to secure.

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