Licensing???

[cet413]

Our company recently changed names (same company, same product, same users, same developers, new name) and we were told by Progress that we would be required to repurchase the software for the full price (over $160K). We've had Progress since the early days 15+ years ago and have paid for maintenance the entire time (probably a total paid out around $1 million). Has anyone else experienced this? I have a feeling we'll be switching to Oracle or another product. What is odd is that our company name has changed 6 times before and they've just updated it in the past. Maybe we now owe them a few million for previous name changes lol.
All comments welcome.
thanks!
Paul

 

[tamhas]

Technically, it can be interpreted that a name change is a licensing event and they are very clear that one cannot simply transfer licenses from company A to company B. But, if your identity hasn't changed, e.g., things like tax id, then this is obviously daft. But, salesreps are known for interpreting things in a way that favors their commissions. So, don't stop with the rep. Go up the food chain.

 

[cet413]

I hear what you're saying, we haven't had the current salesperson that long and they are probably desperate for a commission. So far we've changed the company name on all of our software contracts (Oracle, Microsoft, and 20 others) without issue except for Progress. The Lawyers will have to deal with it since they weren't very open to our conversations. It's my understanding that when a company changes names it's not giving up any rights/ownership of the previous name and that the previous name is basically treated like a subsidiary (I could be wrong though). If every company that went through an merger and/or name change had to repurchase all of the software it owns there would be no mergers on Wall Street. I highly doubt Progress has repurchased all the software of the various companies they've acquired over the years. I'm done whining lol

 

[tamhas]

There are some kinds of changes where there is a real change in the legal entity and some companies consider that a licensing event and other don't. From your description, it shouldn't be an issue in your case, but then I don't know all the particulars. I really would make an effort to work up the food chain in Progress sales before you resort to the attorneys since that will just make people made, make them stick to the details of contracts, and cost you a lot of money. A call or letter to someone higher up is likely to fix it all with little fuss. There are many precedents for this kind of fix.