SAP license fees are due even for indirect users, court says

SAP’s named-user licensing fees apply even to related applications that only offer users indirect visibility of SAP data, a U.K. judge ruled Thursday in a case pitting SAP against Diageo, the alcoholic beverage giant behind Smirnoff vodka and Guinness beer.

The consequences could be far-reaching for businesses that have integrated their customer-facing systems with an SAP database, potentially leaving them liable for license fees for every customer that accesses their online store.

“If any SAP systems are being indirectly triggered, even if incidentally, and from anywhere in the world, then there are uncategorized and unpriced costs stacking up in the background,” warned Robin Fry, a director at software licensing consultancy Cerno Professional Services, who has been following the case.

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InfoWorld Cloud Computing

SAP license fees are due even for indirect users, U.K. court says

SAP’s named-user licensing fees apply even to related applications that only offer users indirect visibility of SAP data, a U.K. judge ruled Thursday. The case pitted SAP against Diageo, the alcoholic beverage giant behind Smirnoff vodka and Guinness beer.

The consequences could be far-reaching for businesses that have integrated their customer-facing systems with an SAP database, potentially leaving them liable for license fees for every customer that accesses their online store.

“If any SAP systems are being indirectly triggered, even if incidentally, and from anywhere in the world, then there are uncategorized and unpriced costs stacking up in the background,” warned Robin Fry, a director at software licensing consultancy Cerno Professional Services, who has been following the case.

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Computerworld Cloud Computing

Microsoft invokes Supreme Court opinion in Ireland email case

Microsoft believes its refusal to turn over email held in Ireland to the U.S. government got a boost from an opinion of the Supreme Court on Monday, which upheld that U.S. laws cannot apply extraterritorially unless Congress has explicitly provided for it.

In a decision Monday in a separate case on the extraterritorial application of a provision of the Racketeer Influenced and Corrupt Organizations Act (RICO), the Supreme Court set out the ground rules for its analysis, pointing out that “absent clearly expressed congressional intent to the contrary, federal laws will be construed to have only domestic application.” The court was applying a canon of statutory construction known as the presumption against extraterritoriality.

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InfoWorld Cloud Computing