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Joseph E. Addiego, III

Joseph E. Addiego, III

Davis Wright Tremaine, LLP

San Francisco, CA

415 / 276-6515

[email protected]

Question Most software agreements state that if there are problems with the software, then the purchaser's only recourse is repair or replacement, and if that doesn't work, then to be reimbursed only up to the purchase price, even if the problems hurt the purchaser's business. Are these provisions iron-clad?

Question Not at all. Software vendors and purchasers need to be aware of a developing trend that allows recovery of consequential damages, i.e.: lost profits, resulting from software that does not perform its essential purpose as promised. This trend ups the stakes substantially in software litigation.

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