When you pay to license an application, you don’t expect the software licensor to compete against you.
Yet that’s what happened in a case involving licensing of telecommunications software.
There was an issue of whether of the licensor had breached the licensing agreement. Or could the licensor be liable under tort law for interference instead.
Now the lesson to learn is that your licensing agreement should be clear about what you can and cannot do.
If you’re a software licensee, you may want to bar the licensor from poaching your customers.
And on the flip side…
If you’re the licensor, you may carve out the ability to tap the same markets as your software licensees,
Of course, you’ll want to have an experienced software lawyer prepare the license.