Questioning License Grants In ASP Contracts

Law360, New York (May 24, 2011, 12:07 PM EDT) -- Contracts with application service providers (ASPs) — or contracts for “software as a service” — tend to look much like traditional software licenses. Not surprising, since a pre-existing license form makes a logical starting point for drafting an ASP agreement. One element the two types of agreements often share in common is the formal grant of a license by the software owner. But considering the nature of most ASP services, it is not clear why such a license should be granted.

Distribution Versus ASP

The traditional...
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