You may consult your textbook and class notes and no other resources. This is an individual
assignment, you may not work with any other students on the paper.
Your paper will be evaluated on the following points:
– logical organization and analysis
– clear thinking and writing
– identification and application of relevant legal rules
– arguing both sides of each issue
– using specific references to the text where helpful
– reaching conclusions based on and supported by your analysis
– correct use of language including grammar, punctuation, and spelling.
– professional appearance
– devotion of adequate but not excessive amount of discussion to each issue.
You represent Bozo and Company the leading purveyor in Southern California of oversized shoes, creepy
makeup, and other clown accessories. Bozo has decided that it wants to more efficiently manage its
sales force, and, to that end, has negotiated a deal with a Software Development firm called CLEAR to
purchase a license of CLEAR’s highly-rated sales management software. Bozo’s President has come to
you, as an authority on contract law, to advise Bozo on the advantages and disadvantages of this
particular software licensing agreement.
You will not be able to advise them as to pricing or the technical capabilities of the software, as that is
beyond your area of expertise. What you are tasked with is an evaluation of the legal aspects of the
You may utilize your BLAW 280 textbook and class notes as your source material for your analysis of the
THE CONTRACT FOLLOWS:
SOFTWARE LICENSE AGREEMENT
THIS AGREEMENT is entered into as of January 1, 2015 (“Effective Date”) by and between COLLINS, LITTLE ENGINEERING & RESEARCH, INC. (CLEAR), with offices at 200 Main Street, Mountain View, California (“LICENSOR”) and Bozo and Company with offices at 6 Imperial Plaza, San Diego, CA (“LICENSEE”).
WHEREAS, Licensee wishes to license software for the purpose of Sales Force Management and CLEAR desires to license this software to licensee.
NOW THEREFORE, the parties hereto agree as follows:
1. GRANT OF LICENSE
Subject to the terms and conditions of the Agreement, CLEAR grants to Licensee a non-exclusive, non-transferable license to use the software identified in Exhibit A (the “Licensed Programs”) for the purpose of Sales Force Management. Licensee may use the Licensed Programs in executable format for its own use, and may translate or modify the licensed programs or incorporate them into other software. Licensee may not, however, transfer or sublicense the Licensed Programs to any third party, in whole or in part, in any form, whether modified or unmodified.
2. CONSIDERATION TO CLEAR
a. Licensee shall pay, upon delivery of the Licensed Programs, the license fees set forth in Exhibit A attached hereto.
b. License fees do not include any shipping, duties, bank fees, sales, use, excise or similar taxes due. If Licensor is required to pay any such amounts, Licensee shall reimburse Licensor in full.
Licensee may make copies of the Licensed Program in executable code form as necessary for use by Licensee and for backup or archive purposes. Licensee agrees to maintain records of the location and use of each copy, in whole or in part, of the Licensed Programs. Each Licensed Program is copyrighted but unpublished by CLEAR. Licensee agrees to reproduce and apply the copyright notice and proprietary notice of CLEAR to all copies made hereunder, in whole or in part and in any form, of Licensed Programs.
The original and any copies of the Licensed Programs, made by Licensee, including translations, compilations, partial copies, modifications, and updates, are the property of CLEAR.
5. PROPRIETARY RIGHTS
Licensee recognizes that CLEAR regards the Licensed Programs as its proprietary information and as confidential trade secrets of great value. Licensee agrees not to provide or to otherwise make available in any form the Licensed Programs, or any portion thereof, to any person other than employees of Licensee without the prior written consent of CLEAR. Licensee further agrees to treat the Licensed Programs with at least the same degree of care with which Licensee treats its own confidential information and in no event with less care than is reasonably required to protect the confidentiality of the Licensed Programs.
The license granted hereunder shall continue unless and until terminated pursuant to Section 7 hereof and subject to Licensee’s proper performance of its obligations hereunder.
CLEAR may terminate this Agreement if Licensee is in default of any of the terms and conditions of this Agreement and fails to correct such default within ten (10) days after written notice thereof from CLEAR.
8. TERMINATION CERTIFICATE
In the event of termination, Licensee will immediately discontinue use of the Licensed Programs. Within one (1) month after termination of this Agreement, Licensee will furnish to CLEAR a certificate which certifies with respect to each of the Licensed Programs that, through its best effort and to the best of its knowledge, the original and all copies, in whole or in part and in any form, of each of the Licensed Programs have been destroyed. The provisions of Sections 4, 5, 8, 11, and 13 hereof shall survive any termination of this Agreement.
9. MAINTENANCE SUPPORT
Licensor will provide to Licensee the following support with respect to the Software:
(i) If during the 1st year of this Agreement, Licensee notifies Licensor of a substantial program error respecting the Software, or Licensor has reason to believe that error exists in the Software and so notifies Licensee, Licensor shall at its expense verify and attempt to correct such error within thirty (30) working days after the date of notification. If Licensee is not satisfied with the correction, then Licensee may terminate this Agreement, but without refund of any amount paid to Licensor or release of any amounts due Licensor at the time of termination.
(ii) In the case that Licensee has technical questions in the use of the Software during the 1st year of this Agreement, Licensee may submit those questions to Licensor. Licensor shall provide consulting to answer such questions without charge to Licensee up to a maximum of sixteen (16) hours for each licensed program.
(iii) If License desires to continue the Software support specified in this section, Licensee shall pay to Licensor the maintenance fee(s) set forth in Exhibit A.
10. DELIVERY OF LICENSED PROGRAMS
CLEAR shall use its best efforts to deliver the Licensed Programs promptly after receipt of the purchase order and export license (if required).
11. WARRANTY DISCLAIMER
CLEAR licenses, and Licensee accepts, the licensed programs “AS IS.” CLEAR PROVIDES NO WARRANTIES AS TO THE FUNCTION OR USE OF THE LICENSED PROGRAMS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE. THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE LICENSED PROGRAM IS WITH LICENSEE. LICENSOR DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN THE LICENSED PROGRAMS WILL MEET LICENSEE’S REQUIREMENTS OR THAT THE OPERATION OF THE LICENSED PROGRAMS WILL BE UNINTERRUPTED OR ERROR FREE.
12. PATENT AND COPYRIGHT INDEMNITY
CLEAR will defend at its own expense any action brought against Licensee to the extent it is based on a claim that the Licensed Programs used within the scope of the license granted hereunder infringe a United States patent, copyright or other proprietary right of a third party. CLEAR will pay any costs, damages or attorney fees finally awarded against Licensee in such action which are attributable to such claim, provided CLEAR is promptly notified in writing of such claim, may control the defense and/or settlement of such claim, and is provided with all requested assistance, information and authority. In the event that a Licensed Program becomes, or in CLEAR’s opinion is likely to become, the subject of a claim of infringement of a United States patent, copyright or trade secret, CLEAR may at its option either secure Licensee’s right to continue using the Licensed Programs, replace or modify the Licensed Programs to make them not infringing, or provide Licensee with a refund of the license fee less depreciation on a 5 (five) year, straight-line basis. CLEAR shall have no liability for any claim of patent, copyright or trade secret infringement based on the use of a Licensed Program in any form other than the original, unmodified form provided to Licensee or the use of a combination of the Licensed Programs with hardware, software or data not supplied by CLEAR where the used Licensed Programs alone in their original, unmodified form would not constitute an infringement. The foregoing states Licensee’s entire liability for infringement or claims of infringement of patents, copyrights or other intellectual property right.
13. LIMITATION OF LIABILITY
CLEAR’S LIABILITY TO LICENSEE UNDER ANY PROVISIONS OF THIS AGREEMENT FOR DAMAGES FINALLY AWARDED SHALL BE LIMITED TO THE AMOUNTS ACTUALLY PAID HEREUNDER BY LICENSEE TO CLEAR. IN NO EVENT SHALL CLEAR BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF USE, LOSS OF PROFITS OR INTERRUPTION OF BUSINESS, HOWEVER CAUSED OR ON ANY THEORY OF LIABILITY.
All notices in connection with this Agreement shall be in writing and may be given by certified, registered, or first class mail or personally delivered at the address set forth on the front page. For purposes of this Agreement, a notice shall be deemed effective upon personal delivery to the party or if by mail five days after proper deposit in a mail box.
This Agreement will be binding upon and will inure to the benefit of the parties hereto and their respective representatives, successors and assigns except as otherwise provided herein.
In the event any provision of this Agreement is determined to be invalid or unenforceable, the remainder of this Agreement shall remain in force as if such provision were not a part.
17. GOVERNING LAW/FORUM
This Agreement shall be governed and interpreted by the laws of the State of California. Santa Clara County, California shall be the appropriate venue and jurisdiction for the resolution of any disputes hereunder. Both parties hereby consent to such personal and exclusive jurisdiction.
18. NON-ASSIGNMENT This Agreement and the licenses granted by it may not be assigned, sublicensed, or otherwise transferred by Licensee without the prior written consent of CLEAR.
19. EXPORT REGULATIONS
Licensee understands that CLEAR is subject to regulation by agencies of the U.S. Government, including the U.S. Departments of Commerce and State, which prohibit export or diversion of certain technical products to certain countries. Licensee warrants that it will comply in all respect with the export and re-export restrictions set forth in the export license for the Licensed Programs and all other applicable export regulations. Licensee agrees to indemnify and hold CLEAR harmless from any loss, damages, liability or expenses incurred by CLEAR as a result of Licensee’s failure to comply with any export regulations or restrictions.
20. ENTIRE AGREEMENT
This Agreement sets forth the entire understanding between the parties with respect to the subject matter hereof, and merges and supersedes all prior agreements, discussions and understandings, express or implied, concerning such matters. This Agreement shall take precedence over any additional or conflicting terms which may be contained in Licensee’s purchase order or CLEAR’s order acknowledgment forms.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective Date.
LICENSEE: Bozo and Company LICENSOR: Collins, Little Engineering & Research, Inc.
By:___________________________________ By:_________________________________ (Signature) (Signature)
Name:_________________________________ Name: Michael Collins, President, CLEAR
Title: __________________________________ Title: Bo Zo, President, Bozo and Company
ONE-TIME COMPUTER PROGRAMS LICENSE FEE MAINTENANCE FEE
Program xxxxx in executable format US $ xx,xxx US $x,xxx
License fee excludes any taxes, shipping and/or insurance charges, and any bank transfer fees.
Code maintenance is free during the first year; thereafter, code maintenance is available for a negotiated price
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