NET(net), Inc.


FTC Required Disclosure by jigordon
October 6, 2009, 9:32 am
Filed under: blog, book, review

The FTC now requires bloggers to disclose what they’ve received for free.

I was about to say nothing when I remembered that I received a copy of H. Ward Classen’s A Practical Guide to Software Licensing for Licensees and Licensors.  It took me so long to read and review that Ward probably regretted even having a copy sent to me.  But I got it for free nonetheless.  Oh, and if you want to send me something for free… I love freebies.  Just remember that I’ll now disclose that I got it for free.

But I think the FTC’s missing a real opportunity for regulation.  I think people who send out free things should disclose from whom they’re attempting an endorsement or comment.  I’ll even go first because, frankly, I only send things to people I know and respect and who would actually have a use for what I’m sending.  This, by the way, is also a great list of folks that you should be following/reading (in alpha order):

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Software Licensing Handbook Reviewed by H. Ward Classen by jigordon
March 6, 2009, 9:32 pm
Filed under: book, review, usage

I am honored to present a review of the Software Licensing Handbook by H. Ward Classen, author of A Practical Guide to Software Licensing for Licensees and Licensors.  Thanks to Ward for his time and energy on creating such a comprehensive evaluation!

Jeffrey Gordon’s Software Licensing Handbook is one of those rare reference resources where the reader only wishes they had come across it earlier.  The Software Licensing Handbook is a comprehensive resource addressing all of the material potential issues a practitioner may confront in a software licensing transaction.  It guides the reader from preparing for the RFP/RFI process to identify prospective vendors until the successful vendor has completed its contractual obligations.

The book begins with a detailed overview of the different intellectual property rights utilized to protect software: patents, copyrights, trademarks and trade secrets.  Mr. Gordon’s explanation allows the reader to understand the basis and means for software protection and thus the foundation for software licensing itself.  By providing a succinct overview of intellectual property law, he permits the reader to conceptualize reason for and the importance of each clause in a software license.  The subsequent text delves into a comprehensive explanation of almost every issue that may arise during the course a software negotiation, including defining the services to be rendered, tax liability, indemnification, source code escrow and most importantly, how to successfully negotiate a software license.  Perhaps the most valuable aspect of his book is Mr. Gordon’s advice on how to negotiate a software license.  Mr. Gordon is an expert in negotiation and it clearly shows.  He interspaces throughout the book negotiating positions from both the licensor’s and licensee’s perspective. His tried and true advice provides invaluable insights that benefit all parties to a transaction.

Mr. Gordon also examines many of the issues related to alternative licensing transactions such as ASP licenses and click-through and shrink-wrap licenses as well as open source licenses.  As open source software assumes greater importance in the world of software licensing, it is imperative that both licensors and licensees understand the risks and benefits of utilizing open source software   Too often parties fail to realize the inherent risks of utilizing viral licenses. This brief but comprehensive discussion provides the reader a fundamental working knowledge of the relevant issues related to open source licenses.

The book explores many aspects of software licensing that are rarely addressed in other books including the RFP process, software audits and the importance of establishing severity levels for maintenance and support agreements.  Each of these issues is critical to a successful licensing transaction but yet many practitioners fail to grasp their importance.  By utilizing an RFP process, a customer is able to compare and contrast the abilities of several vendors and usually obtain better terms and pricing through a competitive process.  Software audits allow the licensor to confirm the licensee’s compliance with the terms of the license grant.  Audit language must be carefully drafted to protect the licensor’s interests while limiting the licensor’s ability to conduct overly broad audits of the licensee’s business at the licensee’s expense.   Similarly, it is in both parties interests to negotiate well defined severity levels for the provision of support and maintenance services to avoid potential disputes.

Not only does Mr. Gordon address the issues involved in software licensing, he provides the reader with a solid foundation for negotiating peripheral agreements when purchasing computer hardware and working with value added resellers (VARs).  While some readers will not interact with VARs or purchase hardware on a day to day basis, his discussion is not superfluous as every practitioner should have an understanding of the interrelationship among vendors providing an integrated software system to ensure the customer receives a vibrant, fully functional system.

Mr. Gordon also includes a chapter on contract management.  Many practitioners falsely believe the contract ends with the acceptance of the software.  This misconception often contributes to the software failing to meet the licensee’s long term goals.  Many software projects continue for many years after the software’s initial installation, emphasizing the need for both the licensor and licensee to manage the contracting process well after installation and acceptance.  Mr. Gordon’s eloquent discussion also incorporates the importance of managing the deliverables, service levels and guiding the contract toward completion.  Finally, the Software Licensing Handbook contains an excellent glossary of important words and phrases often found in software licenses as well as a list of resources the reader can access for further information.  These features are often overlooked by many other authors but yet they provide invaluable assistance to the reader.

Perhaps the book’s only weakness is its lack of a comprehensive model software license form to illustrate Mr. Gordon’s excellent discussion.  A model form would reinforce the reader’s understanding of Mr. Gordon’s points and help them visualize the issue being discussed.  Given the large number of forms available in form books and over the internet, this is not a material flaw but one that would serve as a welcome addition for the reader.

In short, the Software Licensing Handbook is a valuable resource that every individual who negotiates software licenses and technology agreements should own.



Book Review: Yes!: 50 Scientifically Proven Ways to Be Persuasive by jigordon
November 11, 2008, 9:32 pm
Filed under: review

In most business-related books, the general rule of thumb is that if you manage to get a single nugget of valuable information, the book was worth the cost.  This rule is a result of understanding that business books are based on amalgamations of information – that a book on any given topic isn’t going to be universally applicable and that information contained therein will only work given a set of defined criteria.

When you look at the best business books, they become “best” simply by being more applicable.  The broader the application, the broader the audience, the better the book.  Which means that Yes!: 50 Scientifically Proven Ways to Be Persuasive must be best book ever written.

OK, I don’t mean to be so overly-effusive.  But in the span of my life, I’ve done more reading than most.  I’ve read long novels and short stories.  I’ve read fiction and non-fiction (you saw my comparison to Stephen King the other day, right?  I’m a huge fan and collect old first editions of his, like My Pretty Pony, in case you were curious about what to get me for the holidays).  I’ve read boring books, interesting books and everything in between.  In fact, some would say that I read too much.  What can I say?  I love to read.  My point is that with all this reading, I’ve come to live by the general rule of thumb stated earlier.

So it came as quite a surprise that each and every one of the 50 “ways” described in this book is immediately usable in many different facets of your life.  This isn’t just a book for lawyers, negotiators, salespeople or others who have to “be” persuasive for work.  This is a book for every man, woman and child to learn how to better present their desires to another human.  Do you have a spouse, boss, co-worker, parent, child, brother, sister, friend, or email buddy?  Then, as they say, “this book is for you.”

Go get this book.  It’s better than mine.  Definitely more generally applicable (though I think the Five Fundamental Skills explained in more detail in the SLH are still pretty universal).



Rick Chapman Praises the Software Licensing Handbook by jigordon
January 31, 2007, 9:32 am
Filed under: blog, book, review

The just introduced Software Licensing Handbook is an invaluable guide to one of the software’s industry’s most maddening and, at times, controversial topics, software licensing. Since the introduction of the end user legal agreement (EULA) in the late 1970s, software companies have struggled to negotiate successfully the web of various rules and regulations that govern copyright, trademark, patent, and trade secrets. At 216 pages, this handbook is a compact and succinct guide to when you’ll haggle over software license terms and conditions and how to do it well.  Of particular interest is the book’s scenario-driven approach. In most the chapters, a common point of contention between the software licensor and licensee is described, followed by an outline of the issues that underlie the topic and suggested negotiating points for both sides. This is the type of book any software senior executive should keep close to his/her desktop for immediate reference when needed. Highly recommended (and in some cases, critical). Available online at: http://www.licensinghandbook.com.

Rick Chapman

Soft*Letter Volume 23, #2 (1/31/2007)