Is open source a legal risk for your business?

A recent report commissioned by the European Commission has highlighted the increased market penetration of open source software (“OSS”), particularly in the public sector. The report suggests that by 2010, up to 30% of all IT spend could be in relation to OSS related services. Certainly there is a view that OSS provides value for money and a sound alternative to traditional software vendors’ products, a view shared by the Office for Government Commerce which comments that “OSS is a viable and credible alternative to proprietary software”.

OGC update their ICT guidance

Of interest to both IT customers and suppliers will be the most recent update to the Office for Government Commerce’s (OGC) ICT guidance which results from a consultation process with Intellect and other professional advisers. The OGC’s guidance and model contracts have increasingly set the tone for substantial IT contracts in the public sector (local government as well as central government) and are increasingly perceived as best practice for the private sector as well.

Commercial agency regulations – revenge of the salesman?

A number of web business models have been predicated on the use of an agency reseller arrangement; typically, the web site may receive commission in return for end user sales. An important consideration in such arrangements have always been the application of the Commercial Agents (Council Directive) Regulations 1993 (the “Regulations”) and whether compensation was payable on termination of the agency.

Security issues in IT contracts

In our troubled times, security has become a key concern for all organisations. Whether this relates to the ubiquitous threats posed by malicious software or hacking or to extreme physical security issues such as terrorism, increasingly this is an area where IT contracts increasingly seek to make specific provision. To some extent this is a natural consequence of the cost impact of a breach of security for any commercial or public organisation. But legislation and guidance issued by regulatory authorities is also increasingly mandating that organisations have in place systems to address security concerns.

Data protection update: what is personal data?

In a landmark decision in December 2003, the Court of Appeal in Durrant v FSA held that the definition of personal data in the Data Protection Act 1998("The Act") should be construed restrictively to relate only to information that affects an individual’s privacy and which is “significantly biographical”.

The Remedies Directive – changes to the Alcatel period

Changes to procurement rules are of interest to both public sector organisations and suppliers who provide IT goods or services to them.

Update on exclusion clauses

In most IT contracts, the limitation of liability clause is a key issue which is often one of the last issues to be resolved in complex negotiations. In the case of contracts on standard terms, statute intervenes in the form of the Unfair Contract Terms Act 1977 ("UCTA") to place limitations on the effectiveness of exclusions. By way of example, that Act provides that a vendor can only exclude or restrict his liability for breach of contract to a business (where standard terms apply) or to a consumer, to the extent such restriction satisfies the reasonableness test.