Nissan in row over software access to Satyam

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Nissan in row over software access to Satyam

Companies using third party software to build solutions for clients, beware! There could be problems if legal issues are not properly looked at from all directions.

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Chennai, Nov. 20

Companies using third party software to build solutions for clients, beware! There could be problems if legal issues are not properly looked at from all directions. An example of this is the ongoing dispute between Nissan America and Software AG, Germany, on whether Satyam Computer Services ' access to the software of the German company constituted a breach by Nissan.

Software AG has demanded that Nissan pay around $3,000,000 for access of its software by Satyam, and additional demands were put forth for use of the software by Nissan Canada and other third parties. The auto major has sought a declaratory judgment from a US District Court that would make Software AG stop demanding compensation.

A senior Satyam official said there was no 'implication for the company.' It uses the German company's software tools to build new solutions and then tests in conjunction with Nissan. Satyam has a huge offshore centre in Chennai doing 'mission critical solutions' for Nissan. The Hyderabad-based software company's access to Software AG software to perform the functions was set forth in an agreement entered into between Nissan and Satyam on February 14, 2006.

"This does not violate the terms of Nissan's Licence Agreement with Software AG, the auto major told the court in the complaint," a copy of which is available on the Web.

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