By Jeremy Holt; Jeremy Newton; Sarah Ellacott; Andrew Katz; Jean Morgan; All authors
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Extra info for A Manager's Guide to IT Law
The contract should set out any express warranties required by the client as to the supplier’s ownership or entitlement in respect of the IPRs comprised in the system, together with a process for addressing any breach of those warranties. In relation to the possible infringement of third-party IPRs, the client will typically impose a formal obligation for the supplier to deal with any such 20 Systems Procurement Contracts allegations – especially if the system is a critical part of the client’s business and merely rejecting it and claiming back the purchase price would be insufficient.
A website that seems to be down more than it is up. ● A new system that will not talk to the network, which must now be upgraded. 29 A Manager’s Guide to IT Law ● A system on which the client wants more acceptance testing but which the supplier says is complete. ● Software on which the client wants changes but for which the supplier is asking a large price. ● A company acquires a smaller company but the supplier wants a lot more money for the acquisition to use the parent company’s systems. ● A system that is proving very difficult and expensive to link with that of a key client.
Where the system does exist in some form at the time of sale, many buyers still choose the system based only on a demonstration by the sales people. It is very easy indeed to build a shell of a system which appears to do what you want, but which is actually just a shell, enhanced by smoke and mirrors. Computer sales people are often as effective as a magician at convincing the potential buyer that he or she has witnessed something that will be business-enhancing. Remember, though, that such demonstrations show the points that the seller wishes to show, often the glamorous and interesting aspects, and they show the parts of the system that do work.