IT Law

IT law is the law applictaion to matters of information technology, including:

  • Computer software design, development, distribution, licensing, installation, support and maintenance
  • Computer hardware and system design, development, distribution, licensing, installation, support and maintenance
  • Web design, development and hosting
  • Databases

Because computer software, hardware and systems are technologically complex, it is essential that it is clear from the start of a relationship between a supplier and customer exactly what is being supplied, not only in terms of physical product, but also in terms of functionality and reliability. In addition, because of the high value in the information and code constituting  computer software, it is also important that a purchaser of software has clearly defined rights to exploit that software, which go far enough for the purchaser's needs, but not so far as to prejudice the supplier's own rights.

Sadly, it is all too common that IT related transactions are not correctly structured. This can give rise to significant problems, including:

  • The customer not getting what they think they have paid for
  • The customer not having adequate rights of recompense against the supplier for poorly performing systems
  • The supplier giving more rights to the customer than was intended (which can seriously affect the supplier's ability properly carry on its future business, for example if the customer is given exclusive rights to exploit certain software)
  • The customer becoming liable to a third party for the supplier's failure to respect the rights of that third party in creating software or a website)
  • The customer withholding money due to the supplier for tenuous claims relating to poor functionality, where the required functionality is not properly defined
  • The customer becoming unable to acquire support or upgrades to software if the supplier goes out of business
  • The customer using supplier's software as a basis for new systems, which might prejudice the supplier's business

Many of these problems can be prevented by using the correct contracts, such as:

  • Software licences, support and development agreements
  • Hardware and system sales, maintenance and support agreements
  • Escrow agreements (to give the customer the right to software code if the supplier goes out of business)
  • Web design, development and hosting agreements

Healys has extensive experience and expertise in dealing with IT matters, including in relation to software design, licensing and support, hardware sales and support and web design and hosting. We take a realistic and commercial approach to a client's needs, always ensuring that we understand the client's business and the way it operates, in order to tailor IT contracts to the client's requirements.

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Kyri Papantoniou
Partner
T: 020 7822 4171 (DDI)
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