Software companies are increasingly enforcing compliance with the terms and conditions of their licence agreements by conducting Software Licence Compliance, (SLC), Audits.

What Is A SLC Audit? | Kangs Regulatory Advisors

Upon the purchase of computer software, invariably a Licence Agreement is completed which regulates in detail the manner in which it is to be used and the rights of enforcement reserved by the Vendor.

Invariably, the Vendor Company will retain the power to audit, either itself or through its agent, any business or person entitled to handle the software by attending the appropriate premises in order to conduct such audit.

The auditors will easily detect any activity which is not in compliance with the terms of the Licence Agreement.

What Are The Consequences For Breach ? | Kangs Advisory Team

  1. There are a number of potential financial penalties available including:
  • the withdrawal of any agreed discount
  • liability for the cost of back-dated support & maintenance payments
  • liability for the cost of the audit
  • any legal fees incurred (especially if the matter is escalated to court)
  1. There are circumstances where deliberate breaches and abuse of the software can amount to a criminal offence.

How To Respond To A Notice Of Audit? | Kangs National Advisory Team

It is essential that legal advice is sought immediately upon receipt of notice.

We have a team of lawyers who can provide you with the necessary advice and guidance to ensure that your legal rights are protected.

Should you have any questions or need advice on any regulatory topic, please do not hesitate to call one of our lawyers listed below:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258 171 | 020 7936 6396 | 0121 449 9888

Tim Thompson
tthompson@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396 | 0771067 77 67