Our company has purchased SAP software in the year 2009 with 25 licenses. At that time we have created 25 users only. But some logins were accessed simultaneously in different systems as per oral advice of implementation partner. But SAP audit was carried out in Nov 2011 and just informed that we were using multiple logins which is not permitted under the License Agreement. At this point they have not demanded any penalty from us. Then immediately we have blocked the multiple users.
However in 2012, another audit was carried out demanding a penalty for the use of multiple logins in the year 2011.
We feel that it is the obligation of the SAP India Pvt. Ltd to inform the binding norms before hand. They have not mentioned under any clause of the End User License Agreement about the multiple logins usage penalty. It was not blocked by them even. As we are using the SAP for the first time, we are unaware of the penalisation proceedings regarding multiple logins.
IN THIS REGARD THEY HAVE GIVEN A NOTICE SEEKING RESPONSE FROM US BEFORE AUG 24TH TO AVOID LEGAL PROCEEDINGS.
Now my question is whether the claim made by SAP India Pvt. Ltd is tenable in law ? Are we liable to pay the amount demanded by them ?
Please reply at the earliest.
