In an interesting case which addresses the importance of proper EULA drafting, the 5th Circuit has held that the use of software by a customer’s attorney constituted infringement because the software licensing agreement did not allow customers to authorize third-party use of the software. Compliance Source Inc. v. GreenPoint Mortgage Funding Inc., No. 09-10726 (5th Cir. October 18, 2010)
In this case, the software licensing agreement included express language limiting third-part use (but not “access”) of the software. When the software publisher discovered an instance of use by the defendant’s attorney, it amended it complaint to assert such infringing use. The Fifth Circuit held that such use did, indeed, violate the terms of the licensing agreement.
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