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Topic:chanroblesvirtuallawlibrary
Y2K DISASTER:chanroblesvirtuallawlibrary
WHAT TO PREPARE
FOR
by:chanroblesvirtuallawlibrary
Y2K Team
Chan Robles
Law Firm
Executive
Order No. 14 [August 19, 1998] Establishing thePresidential
Commission onYear 2000 Compliance |
Implications
on Trade Secrets and Intellectual Property
Implication
One
For
software owners desiring to engage the services of outside contractors
to correct the Y2K defects, the engagement should be fully covered by
an
agreement more importantly on the aspect of ownership of the resultant
products or derivative works and on the consequential intellectual
property
rights.
Implication
Two
Many
software products currently in use or which are still in the market are
susceptible of Y2K defects. If the customer's internal
information
system utilizes these kinds of software, the vendor who sold it may
introduce
appropriate corrections. Once the customer agrees to have his systems
corrected,
a problem may possibly arise from the fact that said vendor will
certainly
have access to the customer's systems, his vital trade secrets and
confidential
company information included. Acquisition of these vital company
secrets and confidential and proprietary information by third
parties
may prove to be adverse later. Thus, before proceeding with the
engagement
with the vendor or outside contractor, it is suggested that the terms
of
the engagement be thoroughly reviewed and the limitations
identified
and clearly spelled out to preserve the sanctity of the
information.
A carefully drafted agreement to this effect is most desirable.
Implication
Three
Most
software vendors expressly impose the condition that the customer or
user
of the software is proscribed from introducing any modifications
thereto.
If you are a customer or user falling within this category, you need
not
worry. In our view, you may legally introduce such modifications
in the light of the following justifications:chanroblesvirtuallawlibrary
1.
The Y2K situation presents a completely unique problem requiring
serious remedial measures. In view of this, modification may be
introduced based on equitable grounds and on the "fair use"
doctrine.
2.
A customer or user has the right to modify software to customize
to
his specific needs and requirements. This is allowed under
the
general law.
For
further information, contact us via
mail
or
e-mail. Back
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