Audit by software companies.

Company Secretary

Dear all, We are MNC, we have bought several software licences. Now a days different software companies are threatening us for audit . My question is can software company force audit upon us. Does any act gives any specific authority to such software company to have audit of entire server or all the Computers situated in premises. If such audit is allowed then what is the guarantee that these companies will not misuse the confidential data of the company. Please let us know , how we can protect ourselves in such situation.
 
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FIN

Have you signed any clause that gives right to an outsider private agency to audit your belongings/server etc?

 

 
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Company Secretary

Sorry, due to some personal issues I could not login, and hence replying so late. Sorry for the delay at my end. No, Agreement does not have any specific clause which gives any right to the outside agencies to audit our belongings. However, agreement does say that in case if the Software company believes that the company has infringed the user number criteria , software company can then terminate the contract itself. but there does not exist any specific clause relating to audit by outside agencies. It seems that in cease we deny the audit they may terminate the contract itself.
 
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FIN

If there is no clause to Audit and then it is no ground to terminate.

It is upto you to handle the matter in the manner as deemed fit to you.

 

 

 
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Company Secretary

Thanks a lot for your prompt answer. 

Actully,  we have not infringe any no. restrictions of these software so we may prefer to contest. 

 

 
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