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Expert Analysis

Restrictions On The Beneficial Use Of Software

Law360 (November 30, 2010, 11:56 AM EST) -- Software licensees cannot assume that a license to use software includes a right for the licensee to permit a third party to use the software on behalf of and for the benefit of the licensee. The U.S. Court of Appeals for the Fifth Circuit, applying Texas law in a decision filed on Oct. 18, held that attorneys for a software licensee could not use software for the licensee's benefit "[b]ecause the licensing agreement expressly prohibited any use of the licensed technology not explicitly permitted by the agreement itself, and because the agreement did not explicitly permit the type of input access that [the licensee] provided to [its attorneys]."[1]...

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