Resale of Software

Many businesses are understandably concerned about under-licensing and the impact of software audits. But inevitably when the Effective License Position (ELP) is produced, there are almost always significant surpluses of certain license sets. This can be because software has been shelved, a project has been cancelled or legacy businesses are then encompassed into a new infrastructure.

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Resale of Software

EU rules – which will be continuing after Brexit- specifically allow the resale of enterprise software – even if the original license agreements or Master Agreements include provisions barring use by any entity other than the named licenses.

Cerno can assist in the due diligence for buyer and seller, advise liquidators and receivers, and guide corporates. This is a challenging environment where the legal rules need to be sensitively and carefully addressed and dispatched. But very high recoveries can be obtained at little or no cost to the corporate or those in charge of the insolvency process.

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