2. Support Term


2. Support Term

Support and maintenance services should be structured as having an initial multi-year "Initial Support Term" with a series of optional renewal terms (each a "Renewal Support Term"). This approach has two benefits. First, it locks the vendor into providing support and maintenance for the entire Term (both the Initial Support Term and all Renewal Support Terms), while only obligating the licensee for the Initial Support Term. Second, by segregating the Agreement into an Initial Support Term and a series of Renewal Support Terms it provides a basis for fixing the fee for the Initial Support Term and obtaining agreed upon escalations of maintenance and support prices during the Renewal Support Term(s).

Initial Support Terms are usually from three to five years in duration. The number of optional Renewal Support Terms can range from two to five. The important point to remember is that renewal is at the option of the licensee, not the vendor. If the licensee desires to renew support, the vendor must provide it. This ensures that if the licensee goes to the expense of licensing and implementing a piece of software, it will be able to rely on having support for at least a defined number of years (i.e., the Initial Support Term, plus all the optional Renewal Support Terms).




Software Agreements Line by Line. How to Understand & Change Software Licenses & Contracts to Fit Your Needs
Software Agreements Line by Line. How to Understand & Change Software Licenses & Contracts to Fit Your Needs
ISBN: 1587623692
EAN: N/A
Year: 2004
Pages: 56

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