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License Transfer Fee - Company Purchased

Posted on 2006-05-12
Medium Priority
Last Modified: 2013-11-23
Our company was recently purchased and our ERP software vendor wants to charge us a very large license transfer fee. Our consultants are telling us that this is normal.

Has anyone ever heard of this?

If so, what is a typical license transfer fee?

I can't even figure out how they are calculating the amount. I thought maybe a per user fee, a percentage of the original license fee, or a percentage of the annual renewal fee. Any information would be helpful.
Question by:SavageIT
  • 2

Accepted Solution

cvvood earned 150 total points
ID: 16765682

Well, yes and no.. I have successfully done this without any intervention from the ERP vendor... though I have had to pay exorbent fees for exactly what you are experiencing.. Care to share the name of the erp vendor?  JDE? Sage? Deltek?

Read the licensing again and make sure the license your org purchased states that there is a cost for transfering.. If not, try to play stupid and state that NO where in the contract does it state this, and without my signature your play on licensing is erratic and unneeded...

But your probably stuck between a rockand a hard place, as you need support? and without the licensing you don't receive any...

sorry to say, but your probably stuck with the extra costs..  I would play the advocate and say, there are many others, the purchasers....(new owners) are willing to move to another, (like the one they currently use (prior to purchasing the company)  most sales guys will turn back to corporate and try to atleast strike a deal...

Hope this all helps a little....


Author Comment

ID: 16871495
Thank you for your reply.  You've basically confirmed what I thought.  Our license agreement states that we have to get prior written approval from them before we transfer any majority ownership in our company.  But it doesn't say anything about a fee if we don't comply.  They want us to pay 25% of the list cost of our licenses, and this is about 33% of what  we originally paid for them.  If they continue to pursue it, we'll probably just turn it over to our legal department.

Expert Comment

ID: 16871593
Very good, I believe you have done as much as you can on your side. I also believe that your legal department will have MUCH more fun twisting those words from within the contracts than you my friend..

Glad to be of assistance....


: )


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