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M.NAGESWARARAO (General Manager-Finance)     22 August 2012

Sap end user license usage

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.


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.



 7 Replies

Adv Rohit Dalmia 9324538481 (Lawyer)     23 August 2012

Dear Nageswararao,

You need to provide the SAP usage license agreement copy and the copy of the legal notice and the Audit report for the year 2011 and 2012 to the lawyer. then only it would be possible to give you any formal opinion in this regard.


you may forward all these documents on onlyrohit2003@yahoo.co.in so that proper advise could be given.



Advocate Rohit Dalmia



subramanian (consultant)     23 August 2012

Generally all software agreements limits the number of users and this would have been stated in the agreement.You cannot increase the number of users without the permission of SAP. as increase inthe number of users would attract an increase in the licencing charges.You must have been aware of it.Merely saying that this is the first time you have entered into agreement with SAP will not hold much water.You may discuss the matter  with SAP explaining the circumstances under which it happened and come to an amicable settlement as you would be needing their services in future also.


Keerthesh (Sr.Engineer)     13 September 2012


Even our company has recently received same type of notice for multiple log in. How your company dealt with the situation. Did you arrived to any settlement with SAP. Our company is located in Bangalore


rajat (manager)     26 September 2012

dear sir,

even we are facing the same situtaion..can we talk



Jigar Gandhi (License Auditor)     16 August 2013

Dear M.Nageswararao,


Did you get a solution for your SAP License Usage query? We specialize in SAP License Management & perform internal audit for customers for SAP License Compliance. Kindly share your contact details so that we can get in touch with you regarding the same.

You can also reach me at the number / mail-id mentioned below.



Jigar Gandhi



Shruti Mishra   11 December 2021

Please Visit https://www.sevenmentor.com/sap-fico-course-in-pune.php

Archana Pandey   13 January 2022

Please share the terms and conditions of SAP India alongwith all the detailed communication.

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