Articles

01/01/2002

Warranty, Indemnification, and Limitation of Liability Provisions

Barbara A. Walkowski, Siebel Systems, Inc.

I.        Definitions

A.          What is a warranty?

B.          What is an indemnity?

C.          What is a limitation of liability?

II.       Sources of Relevant Law

A.          Statutes

1.     Uniform Commercial Code (UCC), Article 2 (sale of goods)

2.     Uniform Computer Information Transactions Act (UCITA)

3.     Consumer Protection Statutes (Magnuson-Moss Act, state laws)

B.          Treaties

1.     United Nations Convention on Contracts for the International Sale of Goods

C.          Cases

III.       Sample Licensor-Favorable Provisions

A.     Warranties

1.     Media.

2.     Performance.

3.     Viruses.

4.     Date Data.

5.     Disclaimers.

6.     Warranties by Licensee (when Licensee is a reseller).

B.       Indemnification

1.     Third Party Infringement Claims.

2.     Conditions.

3.     Licensor’s Options.

4.     Exclusions.

5.     Entire Liability.

6.     Indemnification by Licensee (when Licensee is end user).

7.     Indemnification by Licensee (when Licensee is reseller).

             C.    Limitation of Liability

IV.     Sample Licensee-Favorable Provisions

  A.      Warranties

 1.     Media

 2.     Performance.

 3.     Viruses and Lock-Out Devices.

 4.     Date Data.

 5.     Rights.

 6.     Warranties by Licensee (when Licensee is a reseller).

   B.     Indemnification

 1.     Indemnification.

 2.     Exclusions.

 3.     Defense of Third Party Suits.

             C.     Limitation of Liability

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