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Copyright audit of the software

INTELLECT-S helped the biggest wholesaler to market a new commercial version of its software product as separate line of business

INTELLECT-S is representing one of the biggest liquor and beer wholesaler in the Urals supplying its products to 6,000 retail outlets in the Sverdlovsk and Chelyabinsk regions.

The company's own and contracted third-party programmers developed software for logistic management, using various third-party programmes. Later our client decided to market commercial versions of its software product, which proved is versatility, as a separate line of business, through a subsidiary which would develop, maintain and license wholesale accounting and management software.

Marketing the software product required it's copyright audit in order to identify possible flaws and avoid potential third-party copyright infringement claims.

Our comment:

In the process of this due diligence, we identified a number of inconsistencies with the copyright law and recommended our client an exhaustive set of measures and steps to resolve them, including entering into appropriate agreements, assignments and warranties, and executing necessary waivers and indemnities. INTELLECT-S also implemented some of the proposed measures and steps; in particular, we drafted two sets of documentation: one governing employment relations with its staff programmers to settle the matters of copyright to products created as part of their job responsibilities, and the other including agreements and assignments entered into with contracted third-party software developers.

We also structured the creation of the software subsidiary to provide a smooth transfer of the trading parent company's IP assets to the new company which will market and promote its own products independently, including the tax and corporate due diligence.

The case was carried out by Anastasia Makhneva, Partner, INTELLECT-S. Also Roman Rechkin, Partner, INTELLECT-S took part in the case.

Copyright, Intellectual Property, Softwares

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