copilot says:
The legal aspects surrounding the discontinuation of perpetual licenses can vary based on the specific terms and language within the licensing agreement. Let’s delve into some key points:
Perpetual Licensing Agreements:
A perpetual licensing agreement typically grants the licensee rights of access and use indefinitely, often in exchange for a one-time fee paid to the licensor.
However, the term “perpetual” doesn’t necessarily mean it lasts forever without any conditions. Instead, it signifies that the license has an unlimited term, as long as neither party chooses to terminate it12.
Termination Language:
The ability to terminate a perpetual license depends on the language used in the agreement.
If the agreement states that it is “revocable at will,” the licensor can likely terminate it for any reason at any time.
Conversely, if the agreement contains the term “irrevocable,” termination becomes more challenging.
The overall interpretation of the agreement plays a crucial role in determining termination possibilities1.
Material Breach:
Even under a truly irrevocable perpetual licensing agreement, if the licensee commits a material breach, the licensor has the right to terminate.
Examples of material breaches include:
Sharing or sublicensing with a third party.
Commercial use of the licensed property.
Unauthorized copying of the property.
The agreement should specify restrictions and describe conduct constituting a material breach1.
Silent Agreements:
If an agreement is silent on restrictions, revocability, and termination (meaning it contains no language regarding these issues), the outcome depends on the agreement’s duration.
Courts have found that non-exclusive perpetual agreements, which are silent about revocability, can be revoked at will.
Conversely, non-exclusive term agreements (with fixed timeframes) that are silent about revocability are generally not terminable during the term.
Precise drafting is essential to avoid relying solely on default rules1.
In summary, the legal reasons for discontinuing perpetual licenses hinge on the specific wording of the agreement, the presence of material breaches, and the overall context. For personalized advice, consulting an experienced licensing attorney is recommended1.=====================
did mills screw v ip in the writing of the agreements/contracts? and for some illegal consideration?