J
Jugde
Guest
What is the name of your state? California
This is an excerpt from a license for a software package that we use as a service provider:
"10.1 Liquidated Damages. Licensee agrees and acknowledges that the damages suffered by Company for unauthorized copying, downloading or transmission of the Software and/or disclosure of and loss of trade secrets embodied in the Software licensed hereunder would be difficult to ascertain and are incapable of being calculated. Licensee therefore agrees that if, as a result of its action or inaction, the Software is made publicly available in violation of this Agreement or said trade secrets are disclosed, infringed, or otherwise diminished in value, Licensee will pay to Company the sum of five hundred thousand dollars ($500,000)."
What I want to know is, if this is enforceable. Basically, we will never give out the software to anyone, but we are concerned about someone hacking into the server and using a malicious means to get ahold of the software from one of our systems. I asked the owner of this company if that would apply, and he says it would and that we would owe $500,000 if a hacker got the software from our system. I don't think it could ever be proven anyways, but I still want to protect my business. Is this license enforceable?
This is an excerpt from a license for a software package that we use as a service provider:
"10.1 Liquidated Damages. Licensee agrees and acknowledges that the damages suffered by Company for unauthorized copying, downloading or transmission of the Software and/or disclosure of and loss of trade secrets embodied in the Software licensed hereunder would be difficult to ascertain and are incapable of being calculated. Licensee therefore agrees that if, as a result of its action or inaction, the Software is made publicly available in violation of this Agreement or said trade secrets are disclosed, infringed, or otherwise diminished in value, Licensee will pay to Company the sum of five hundred thousand dollars ($500,000)."
What I want to know is, if this is enforceable. Basically, we will never give out the software to anyone, but we are concerned about someone hacking into the server and using a malicious means to get ahold of the software from one of our systems. I asked the owner of this company if that would apply, and he says it would and that we would owe $500,000 if a hacker got the software from our system. I don't think it could ever be proven anyways, but I still want to protect my business. Is this license enforceable?