Near the end of the summer, Oracle announced that it was making a “strategic decision to eliminate on-premise term licenses,” effective September 1, 2020. Oracle states this decision was influenced by the organization’s new focus on cloud and an increasing number of on-premise clients moving toward perpetual licenses. This means that with a few exceptions, Oracle will no longer be offering on-premise term licenses. Perpetual licenses are not affected by this announcement, and existing customers paying support on their term licenses will remain supported through the end of their terms.
On July 28, 2020, Oracle issued new guidance on Licensing Data Recovery environments. It is important to take the time and review these policy statements from Oracle. It is possible for Oracle through a policy to extend to your organization additional rights with your Oracle software that is not in the contract. A key point here it’s not a contractual right. Which means Oracle can easily just take it away.
Get to Know Beeman & Muchmore, LLP: LicenseFortress’ New Partner in the Fight for Fair Oracle Audits
LicenseFortress announced a new exclusive partnership with Beeman & Muchmore, LLP, the Northern California law firm founded by Arthur S. Beeman and Joel T. Muchmore, the legal duo that served as lead counsel for Mars Incorporated when it took Oracle to court for its abusive audit tactics in 2015.
Announcement from Oracle:
We are continually working to improve your experience as an Oracle PartnerNetwork member by simplifying and streamlining our partner program and associated engagements.
“Don’t bring a knife to a gunfight,” is how Michael Corey, co-founder of LicenseFortress, advises companies that are going to get audited by their software vendors. Conducting license compliance checks for over ten years, Corey has witnessed several instances where companies fail to understand software licensing nuances and lack knowledge around license metrics pertaining to software deployment, usage, configurations, and cloud architectures. Such blind spots are why software vendors like Oracle, IBM, and Microsoft find software audits an easy way to generate additional revenue.
Imagine that during negotiations, you mention a specific point you want written into the ULA – an exception to the technical support cap, for example – and your Oracle salesperson agrees. Cool, right? The following Monday, Oracle sends the paperwork over, you sign it, and everyone goes on with their lives. Then, three years later, when certifying out, your Oracle rep tells you that you exceeded your support cap multiple times and you’re going to be charged exorbitant fees.
It is inevitable that the fallout from the Covid-19 pandemic will draw opportunists. Due to peculiarities unique to the resulting economic fallout, we are seeing this truism in play in the world of intellectual property monetization. Particularly with regard to patent litigation and software license audits, the pandemic will likely increase certain very real threats to companies of all sizes and industries. This means that while businesses are preserving a solvent bottom line, in-house counsel must protect their clients against attacks from emboldened software vendors and patent litigators.
There are few things worse than thinking you understand something – a complex, multi-faceted historical event that’s easy to oversimplify, a movie with a nuanced ending, or your relationship with someone – only to discover you never got it. But these feelings of betrayal and confusion are even harder to grapple with when the misconception ends up costing you or your company money – especially if it’s an exceptionally large amount.
Most people like the sound of the word “unlimited.” Unlimited soup, salad and breadsticks at a certain well-known Italian chain restaurant; unlimited free refills; the all-you-can-eat buffet.
The appeal offered by Unlimited Licensing Agreements – or ULAs – is understandable. For a rapidly scaling but generally stable company that needs to offer many seats to an ever-growing cast of employees, a ULA might even be a good bet. But let’s look at some of the many instances where going the a la carte route might save money, not to mention headaches.
Everything is running along just fine for your organization’s Oracle product – or so you think. But many organizations using Oracle products don’t know until it’s too late that a feature – or multiple features – has been turned on without their knowledge.