Software Licensing For SMEs: What You’re Agreeing To And What You Should Negotiate.

For many small and medium-sized enterprises (SMEs), signing a software agreement feels routine, a quick click, a countersigned PDF, and you’re up and running. Whether you’re subscribing to a cloud-based platform, building a product with open-source components, or negotiating an enterprise software deal, understanding what you’re agreeing to is not just good practice, it’s essential for protecting your business. The Hidden Risk in Open-Source LicensingIf your business develops software, even for internal use, open-source licensing risks are a serious concern that many SMEs overlook until it is too late. SMEs should focus their negotiating energy on:Intellectual Property Indemnity: Push the vendor to cover any IP infringement claims arising from their software. If a third party sues you for using the vendor’s product, the vendor should bear that risk, not you.