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Can a licensee be forced to use the licensor's software?

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daves0

Junior Member
What is the name of your state (only U.S. law)? Illinois, but this question pertains to national companies and organizations

I have created a software system for small non-profit organizations. It runs a website for them that they can interact with their customers on and conduct the majority of their business there. Some of my clients have been in license agreements with another non-profit similar to themselves, in order to share that company's branding and other benefits. Now, that licensor company is requiring these licensees to stop using any website software other than what that company provides. This is a new requirement of the licensing agreement, and anyone who renews must agree to this. The way this is being presented is, there is a cost for using the website software provided by the licensor, and that cost must be paid whether the licensee uses the software or not.

Is that legal? What is my recourse if it is not?
 


adjusterjack

Senior Member
Yes, it's legal for a licensor to offer different terms when a contract period expires. The licensee is free to say no. Nobody is "forcing" them to do anything.

You, unfortunately, have no recourse against a licensor who is doing this to people who also happen to be using your software.

However, if any of your licensees breach any contract that they have with you, you are free to seek redress against them.
 

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