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Q&A - Why shouldn’t my company purchase “shrink wrapped” software? |
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Q.) Why shouldn't my company purchase shrinkwrap software - EVER(!!)? What are the risks and costs involved? How does this license expose the company to even higheraudit risks?
Our answer: Shrinkwrap software is essentially the same product you can buy from authorized resellers with two major differences: Shrinkwrap is arguably the most expensive way to purchase any product. You will frequently pay 50% to 70% more for this license than you would for a negotiated license for the same product.
The second, and actually the most dangerous difference is the license itself. Shrinkwrap licenses are nicely concealed behind that snappy plastic-wrap that so lovingly embraces the box you just bought at the office supply store. This means that, in a majority of cases, merely breaking the seal on the plastic and/or opening the box can legally bind you to a license you have never read. Since you have never read the license, you can’t possibly know how nasty the terms of possession can be. Here is a rather uncomfortable reality: Shrinkwrap licenses are some of the least favorable licenses in existence.
So? Here are your options: Buy shrinkwrap and pay 50% to 60% more; legally bind yourself to a license you have never read – one that has historically represented terrible terms and conditions. OR Negotiate the license with a reputable dealer; pay less and gain more livable terms and conditions.
(And, before you start whining: You should very rarely have to buy only a single license of any product – so you can take advantage of volume discounts even at 3 seats. AND, before you start complaining: The only reason you aren’t allowed to negotiate every license is that the copyright holder told you that you couldn’t.)
Try repeating this phrase to that big time sales rep next time they hand you that, "Take it or leave it." attitude: "I'm the customer. If you want my money then we will work out a mutually beneficial agreement. If not - I have a perfectly sound BATNA and I'll take my business to your competition."
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