Case results
/
Intellectual Property
Outcome
Software licence restructured
An enterprise customer had under-reported seats for three years. An audit-led claim recovered the unpaid royalties and reset the licence on fair terms.
01
The challenge
Our client, the founder of a workflow software company, licensed its platform to a large enterprise customer on a per-seat basis. Usage data suggested the customer was running far more seats than it paid for.
The customer was the company’s largest account. The founder needed the money owed but could not afford to lose the relationship.
02
Our approach
We used the contract’s audit clause, which the customer had forgotten it signed.
01. Exercise the audit right
We served notice under the licence and appointed an independent auditor to verify seat counts over three years.
02. Quantify the claim
The audit found more than twice the licensed seats in use. We calculated the shortfall at list price, with interest.
03. Reset the terms
We used the claim to negotiate a new enterprise licence with a fixed fee and a clear true-up process.
“We recovered what we were owed and kept our biggest customer. I did not think we could do both.”
Founder, SaaS company
03
The outcome
The customer paid $2.6M in unpaid royalties and signed a new three-year licence at a higher annual value. The relationship continued, on terms both sides now understand.
$2.6M
in recovered royalties for a SaaS founder
6 months
matter duration
2024
year resolved
Prior results do not guarantee a similar outcome. Some details have been changed to protect client confidentiality.
Case facts
$2.6M
in recovered royalties for a SaaS founder
Practice
Intellectual Property
Year
2024
Court
Licence audit and negotiation, London
Duration
6 months
Elena Morris
Lead attorney · Counsel
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Prior results do not guarantee a similar outcome.
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