05/07/2009
New ALI Software Principles Will Require Companies to Update Their Form Agreements
On May 19, 2009, the American Law Institute (ALI) is expected to approve the Principles of the Law of Software Contracts (the "Software Principles"), which will create new rules and set new standards for software contracts in a number of areas. Although ALI Restatements and Principles are not binding law, they are highly persuasive because they are developed over several years with extensive input from law school professors, judges, and practitioners. As a result, it is likely that future courts will rely on the Software Principles as setting the bar for best practices for software licensing transactions. This will present challenges for software companies who must continue to comply with existing law, but may also want to conform their contracts to the Software Principles.
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