How a Client’s Software Deal Went Wrong

Let me tell you about a client who thought they had their software licensing all figured out.

This client reached out to us with a problem that, at first, seemed minor.

They had just signed a software license agreement and assumed they had everything under control.

After all, they had the access they needed, so what could go wrong?

Well, a lot.

As their business started to grow, they realized they didn’t fully understand the fine print of their license.

The truth is, when it comes to software licenses, it’s not just about getting access.

The real details, the ones that can cause you trouble later, lie deep within the fine print of those terms.

This client had learned that the hard way, and they came to us to fix things before they made the same mistake again.

Here's a couple of the issues we needed to solve:

(1) They thought they had a license that would last forever.

Turns out, it was time-bound, and their access was set to expire in a year unless they renewed.

(2) The license was revocable—meaning the software provider could cut off access if certain conditions weren’t met.

One mistake, and they could lose access to their core tools.

(3) As their business grew, they needed to shift the software to a new division.

But the license was non-transferable. They were stuck.

Trapped by a contract that didn’t allow them to shift resources or adapt as their business evolved.

(4) They wanted to let contractors or partners use the software, but their license was non-sublicensable.

This meant buying more licenses—adding extra costs.

What seemed like a small misunderstanding had now turned into a series of limitations.

Each one squeezing their ability to grow and manage their business efficiently.

When they came to us, they were determined not to let this happen again. So, we got to work on their new terms.

(1) Clarifying License Duration

First things first, we tackled the confusion around license duration.

We made sure their new contracts clearly stated whether the license was perpetual or time-bound. No more guesswork.

For time-bound licenses, we ensured transparent renewal terms.

The client would know exactly when renewals were due and what they needed to do to avoid disruptions.

(2) Securing Irrevocability

We focused on negotiating irrevocable licenses, giving the client more security and peace of mind.

We also drafted conditions for revocability in a way that minimized risk.

For example, any revocation had to be based on significant breaches, not minor technicalities.

This protected the client from the fear of sudden loss of access due to vague or easily triggered clauses.

(3) Flexibility for Growth

Next, we negotiated for transferability.

If the client wanted to move the license to another division or sell part of their operations, they wouldn’t lose access to the software.

We also made sure that any fees for transfers were clearly outlined and fair. No more hidden costs or nasty surprises.

(4) Operational Efficiency

Finally, we worked on adding sublicensing rights.

This allowed the client to let contractors and partners use the software without needing to buy a new license every time.

This saved them both time and money, making their operations much more efficient.

By renegotiating these terms, we gave the client back control over their software licenses.

-> The client now knows exactly how long their licenses last and can plan for renewals without any surprises.

-> No more fear of losing software access. Their licenses are secure unless there’s a major breach—minor issues won’t pull the plug.

-> The client can transfer licenses between divisions or during business changes, allowing for smoother growth and resource allocation.

-> They can now allow contractors and partners to use the software without needing to purchase additional licenses, saving money and operational headaches.

Remember - it's not just about getting access to software; it’s about understanding every single term in that contract.

Hidden clauses on license duration, revocability, and transferability can seriously limit your business flexibility and add unnecessary costs.

Always dive deep into the details before you sign, or you might end up with a deal that works against you.

The next step? Take a close look at your current software agreements.

Are there any hidden clauses that could restrict your growth or flexibility?

If you’re not sure, it’s time to renegotiate or seek advice.

And if you need our help, just reply "HELP," and I'll send you steps on how we can work together.

Talk to you soon.