Deck 18: Contract Negotiations and Software Licensing

Question 1

Which of the following is true?

A) A patent is a kind of copyright.
B) Copyright protects the "invention" of an inventor.
C) Patent protection applies to inventions.
D) Patent applies to original works.

Answer 1

Patent protection applies to inventions.

Question 2

When commercial software is distributed, typically:

A) the source code is withheld.
B) the right of ownership to the source code transfers to the buyer.
C) object code, executables, and source code are bundled and shipped together.
D) the software becomes "open source."

Answer 2

the source code is withheld.

Question 3

Using SaaS:

A) software is sold directly to consumers and becomes their property.
B) software is sold to consumers, who then have a license to use it.
C) software applications are held by a vendor and made available to customers over a network.
D) software resides on no media.

Answer 3

software applications are held by a vendor and made available to customers over a network.

Question 4

When negotiating an agreement between a vendor and the HCO, which entity should write the second draft of the agreement? Which should write the third?

A) Vendor; vendor
B) HCO; HCO
C) HCO; vendor
D) Vendor; HCO

Question 5

In a license agreement, the questions of who the users are, whether software can be distributed, and the number of copies that can be run all fall under the category of:

A) scope.
B) definition of terms.
C) specifications.
D) service level agreements.

Question 6

In a software license, a "response" to a user problem:

A) is another word for a "solution."
B) may, completely legally, never be forthcoming.
C) is typically guaranteed to be 24 hours or sooner.
D) is independent of problem severity.

Question 7

A fee of 18% of the license fee per year for vendor maintenance and support would be considered:

A) high.
B) quite typical.
C) barely acceptable.
D) low.

Question 8

On the vendor's side, which of the following revenue recognition issues may drive or affect key provisions of the agreement? (Select all that apply.)

A) Insufficient user uptake upon implementation
B) Conditions on payment
C) Delivery of software not existing at the time the agreement is signed
D) Payment milestones
E) Possible refunds

Question 9

Which kinds of code can a computer read? (Select all that apply.)

A) Source code
B) Executable code
C) High-level code
D) C++
E) Interpretive code

Question 10

From a legal perspective, which of the following serve as contractually binding statements made by a vendor? (Select all that apply.)

A) RFP material incorporated into the license agreement
B) Statements by salespersons
C) Marketing materials
D) The license agreement
E) A written memorandum of understanding that precedes the license agreement