Ensure Digital Signature Legitimateness for End User License Agreement in Canada

How to eSign a document: digital signature legitimateness for End User License Agreement in Canada

walk it up let me just make sure I can get that all right so my name is Laura kaldi and I run sales and marketing here at applied Frameworks I'm also the webinar host for today so that's my main job right now is to let you all know that we'll be recording the webinar and sharing out the link to the recording along with some um you know if whatever questions get asked during this if we feel we could do a better job or a deeper dive into any particular question that'll also be part of the email that we'll send out registered um so I think one of the things to to note in terms of logistics for the webinar is as you have questions it would be great if you could put them in the Q a button and when I can or when it makes sense I'll interject them over the course of the webinar and whatever we can't get to that way we have time at the end to talk about questions so any question you have in Q a will be helpful to us even if we don't get to it we will get to it in the follow-up email so no question is a waste of time absolutely uh the other thing I'll point out here is if you need to reach me my email address is on there at Laura appliedframeworks.com and I'm sure you all know this we say it a lot but our focus is helping organizations create sustainable uh profitable software enabled Solutions and when you're thinking about the application or the introduction of software for some companies their Hardware software is new right for other companies software is what they're delivering but figuring out how to create a business model that's both sustainable and profitable requires a lot of things right often agility is part of it um portfolio Management's part of it right so these are areas that we focus on in that product management space this is Carlton is our head of product um so this is you know certainly a area of extreme interest for him but this webinar really is about okay well how do we think about sustainable profitability when we're talking about a software enabled solution so if you want to flip forward Carlton um so for me my personal interest in kind of how you create a profitable software enabled solution really is around customer understanding and my background other than being in sales is I've participated in many kind of customer research customer understanding pieces and when we're thinking about this system that is profitable software we talk about it as profit streams customers just one segment in here that that I happen to be kind of personally interested in but it's the system and there's a lot to this and this is why I'm really excited that Carlton is leading this conversation because he's really going to be talking about licensing which is super important to the system itself but not necessarily my personal strength so I'm really glad that we're reading this okay thank you so I'll pass it over to you Carlton and you can say a few words about yourself yeah uh you know I'm the SVP of product here at applied Frameworks uh my responsibilities are around managing our portfolio products uh which includes you know lots of different things that we offer here so our consulting services are uh live instructor-led training and our Online Academy so I'm the co-creator of the applied Frameworks Online Academy with uh our CEO Jason Tanner and a lot of my focus recently has been working on how do we improve and expand the impact of our product management accelerators in fact I'm getting ready uh just this week for our trip to India to do some work with the product management Academy for one of our clients in India so I'm really looking forward to that I live in Portugal so anything else no actually well if you put the slide forward yeah let's go ahead dog shows on there too which of course I love your dog so oh my dog yeah oh actually yeah one more so okay one thing I did want to mention here and we'll send this out as well is we have a lot of webinars that are recorded now around profit streams and so this is one dimension but for those who are interested especially after this um if you go to our webinar page you'll see record it's from many others that I think are also really interesting yep uh yeah this is me my background here just uh SVP a product from trainer and Laura wanted to see the dog that's my dog uh is Boston Terrier he's uh one year old this week so okay well uh thank you very much Laura for the introduction and helping people kind of Orient themselves to what else we've talked about with respect to profit streams today we're talking about software licenses and when I mention the term software license what image comes to mind right so kind of think about that uh is it like we have here the image on the left a seemingly incomprehensible block of text written in perhaps a foreign language or is it kind of like the image that we will have here on the right peering into a mysterious Abyss that perhaps has no end our goal today is to help clear up some of the confusion you might be experiencing so that the next time you read your software license agreements you feel confident you understand what you're reading okay so let's take a look at some of the agenda that we have uh agenda straight for introductions we've already done that uh what we're going to be talking about next was why do you care about this topic and what do you need to know some pretty straightforward agenda uh and what I'm going to do today is to synthesize multiple Concepts from different webinars so but don't worry if you missed out on different webinars you won't miss it much uh but I'm going to synthesize some multiple Concepts to show you how design choice is made by product managers and product owners impact multiple elements of a software enabled Solutions business model so we're going to do some synthesis today and show how all this stuff is interconnected and as uh Luke and Jason like to say the authors of our profit streams book it's a system right so let's think about why do we care and uh I want to start on this idea here a long time ago I was a geophysicist and here are some of the tools that I used while out in the field right Rock camera so as geophysicist you want to expose a fresh surface of rock outcrops so that you can see the minerals and you can see what's there get under the dirt next uh we have a Brunton Compass so the Brunton Compass is used to measure What's called the strike and the dip of faults and rock layers or rock formations found in the field this is just data that you collect very important to help you understand what's going on in the subsurface uh here is a digital camera enabled with GPS and this is used to record any outcrops or unusual formations with an image so a lot of pictures uh geologists or geophysicists take are of like folds and rocks and they usually put like a coin in the picture for scale uh and then finally last thing you need are hiking boots because if you're going to spend a lot of time on your feet you need some good shoes all right and what I want to ask all of you right because we are going to connect this in a moment to software licenses one of these tools is different from the others and I'm going to want you to think about which one that is and you can share with us in a poll uh what you think it is so let me launch the poll so Laura while we wait for people to answer this poll what do you think which of these tools is different from the others oh I have an unfair Advantage because I know but you know given the fact that I'm um you know about to need a better pair of winter boots myself like I'm focused on your boots there I'm based in Chicago and it's snowing and wet and cold and my shoes aren't going to cut it today so I uh I have to say the front and Compass I we I did a move recently and I found my Brighton Compass I had to adjust it for the declination because uh compasses need to be adjusted where you are in a position of the Earth because north kind of moves around interesting so I wouldn't even know how to calibrate that I would not know well you have to you have to look at a table so uh okay so uh feels like we've got 16 out of 19 people oh 18. uh I'm gonna end the poll there and let's see what came up and we'll share the results all right uh and the results are just for everyone here uh rockhammer 22 front Compass 11 digital camera 44 and hiking boots 22 okay uh and let's so for those of you that said it was the Pentax GPS enabled digital camera you are correct right that one is different from all the others but how is the digital camera different what makes it unique right how is this one different from the others and tell us in chat right what do you think Laura what what makes the digital the the Pentax GPS enabled digital camera different from the other ones uh well again I know the answer but one of the things I'm thinking is the output is digital and it can live in many way its output can then live in many places so I could have what it produces live on my computer it could be in the cloud like there's so flexibility on the output of what it it creates all right so we're seeing some ideas technology it's technology it uh has GPS creates an archive software enavers the camera functional functionality input output so for the folks the people that said technology that's true but remember the front and Compass is a piece of technology it's it's a magnet it is it's technology it's anal it's analog technology right uh and this here I think people uh would say I think someone mentioned software right what makes the digital camera unique is the software right it is the one field tool here that relies on software and while and he and here is why I'm talking about this software enabled camera in a webinar about software licenses right um just get this to work software is not a physical thing it's intellectual property right and and this is really really important when we talk about software licenses because because software is not a physical thing right it's intellectual property it means that we have to license the software to the customer it's not sold and unlike a physical good like perhaps this candle or my wallet or the brunt and compass you know where the customer can transfer ownership rights I can give that brought Encompass to someone else or I can give my rock hammer to geology student a software license restricts how and what ownership rights may be transferred if any at all right now some you might be thinking at this point wait a minute digital camera is a physical thing I can buy so I'm not quite following your logic here right because you know this is a this is a camera digital camera too right physical if you attended our November webinar and value exchange you will recall that the pattern of value exchange describe with my digital camera example is called Hardware if you did not attend that webinar don't worry about it a value exchange model is simply a pattern that describes when the customer gives a provider money what do they expect to be in return in this case right that would be a Pentax GPS enabled digital camera right and so I give the provider let's say it's amazon.com money they give me back a Pentax GPS enabled digital camera but without the software the digital camera is an inert piece of junk and that's why we call that value exchange model Hardware the value people associate with the hardware right the digital camera comes with free software already installed on the device right and so what software exists on a digital camera well there's algorithms to digitize and store them in memory there's software to manage and display digital photos on the camera on the little LED screen there's software to adjust the various settings of an image such as color saturation tint warmth crispness Etc after the photo's been taken and most importantly to the geophysicist in the field there's software for the GPS the precise latitude and longitude and elevation of a location so when I'm out there taking pictures of these rock formations or when where these faults are right I know where that was on the map I don't have to go figure it out old school like with the Brunton compass and try to triangulate my position which I did in graduate school right and the use of that software all that software that's on the pentex digital camera is governed by license agreements in fact the Pentax digital camera shows that there are actually two types of license agreements that we need as product owners and product managers to pay attention to right uh so if you're buying the digital camera right your use of the digital camera is governed by a customer license the rights and restrictions impose upon you by Pentax right on the other hand if we're Pentax and we wish to embed for instance the GPS software into our digital camera the use of that software is governed by what's called a solution license the rights and restrictions imposed on us by our suppliers okay so this digital camera example is really good because it talks about when you buy the digital camera and you open it up as a piece of Hardware there are a number of license restrictions that you have uh related to the software right you can't actually go and modify the software on that digital camera you're not allowed to do that now I can give the digital camera to somebody else right that's fine they can use it but they can't go and modify that software either now Pentax also makes agreements with me as the user of the camera what sort of things that they will provide me and as you know with sometimes with digital cameras sometimes support for the software for you know downloading the images they don't support it after a certain amount of time so after you know five ten years like I have some really old digital cameras the software the software that runs a digital camera like on my computer it's defunct uh so why does a product manager need to understand the relationship between customer and solution licenses especially as it relates to solution licenses because every software-enabled solution is a mixture of new code and systems Integrations with other components and in the case of the pentex digital camera how they used and paid for the various components of like the GPS the image algorithms digital algorithms digitize the images all of that was defined by a solution license right they had to go to you know the people who wrote the software for for those two examples and get permission to use their software on their physical device and they had to pay for those rights and they had to negotiate what rights they could have and if you think about the applied Frameworks Profit Stream canvas this is why licensing is two blocks in The Profit Stream canvas The Profit Stream canvas has 10 so 20 of The Profit Stream canvas is all about licensing customer licenses right those relationships you impose upon your customers and solution licenses the relationships that are our suppliers impose upon us uh and in the Pentax example we saw the outlines of how the value exchange model Hardware drives design choices made in the solution and customer licenses so let's look at another example which will show how design choices in our solution like how we architect the system propagates into pricing solution licensing and customer licensing and and I just want to emphasize again with software enabled Solutions and profit streams this is all an interconnected system you can't think about these things in isolation so in the applied Frameworks Online Academy we Lo license multiple solutions to deliver our Advanced scrum and product management accelerators products right the three solutions we in license right are our learning management system our LMS we get that from a company called Cipher learning our e-commerce platform woocommerce pretty standard internet uh and then our credit card processor strike so let's look at in detail or some of the restrictions Stripes imposes on us because we don't want to build a credit card processing system we don't want to build an e-commerce platform we don't want to build an LMS so all right our competency is continuing education for product management Advanced scrum practitioners so we in license these Technologies to deliver our solution perfectly legitimate approach but because we in the license strive to do our credit processing they put certain restrictions on us how we use our technology so straight charges a transaction fee for each sale we make right that's their value exchange model it's called transaction and this has an impact on our profit so for instance one of our products that we offer in advanced scrum training is called Advanced certified scrum Master express our current price level is 795 dollars right and if you look out you know ing to the transaction fee from scribe strike you can see what our payout is and how much we have to pay strike to use their Solution on every transaction but if you look at the price level right this it is sufficiently high so that this payment strike is negligible when compared to the overall profitability of this product itself okay stripe also has some rules around refunds which impact the profitability right uh so let's take a look at what our refunds were at our Online Academy last year right so this is for everything that we sold on the Online Academy we had 13 out of 29 transactions 239 transactions were refunds it's uh about six percent which is a little bit below the industry average so I'm not too concerned about this annual loss you know the big scheme of things this is you know acceptable however Stripes rules about no refunds after six months does have material impact on our customer license so because stripe will not refund us uh after six months right they won't send the money back to someone's credit card that means on our end we would have to write a check right to pay someone back their money and you know financially we you know we're not going to do that right that's actually a much bigger loss than 379. so as a result of stripes restriction that impacts the customer license and our customers likes is absolutely no refunds after six months now we give people all sorts of refunds if you don't in the first seven days if you don't like it we give a full refund after that it's a pro router refund based upon how much you consume but after six months there's absolutely no refunds because we can't get that money back from Strike and I just want to emphasize here right is the second example much like the Pentax example illustrates why understanding software licenses are so important for product managers and product owners right all of these things are interconnected and while things you don't think would have an impact really do I take a quick pause because I feel like I've been monologuing how's it going Laura so so far okay at this point if anyone has any questions or you just want to make sure we're going to talk about something or maybe you even have a scenario you want to pose please feel free and we can certainly do some kind of scenario discussion discussions as well um yeah no I think um keep going and I don't have anything to interject okay yeah so all right so where does the product manager start right well uh here's some advice we give our clients number one piece of us we give to our clients speed the contract it and and software license Agreements are contracts and if you do not read the contract you do not know what you're signing up for so I urge you take the time to understand the terms contained in any solution license for the components that you use in your software enabled solution and make sure it's clear in your mind what commitments you're making to your customers in your customer licenses because that is a contract of a relationship that you're establishing with your customers so if you say it in the license agreement you have to deliver on and because software licenses are contracts they're often detailed they use specialized language and let's face it they're a bit try to read I was just reading one in preparation for this webinar it's tough right and if you don't understand something in a contract do not guess consult with your corporate Council product managers are not lawyers so do not pretend to one and I just want to emphasize this point right if you don't understand what's there go talk to a lawyer that's their job to give you advice and to know this stuff right okay so talk to a lawyer if you have any doubts there are lots of sections to these contracts right and in the spirit of time I'm only going to focus on these six areas okay and to help make this conversation more real and less theoretical right I'm going to share with you excerpts from a customer license agreement from a custom company that I discovered called spanning spanning is a small software company based out of Austin Texas about 25 people and they're a provider of a software enabled solution that stores and protects data generated by SAS Solutions so for instance suppose you want to make your own you want to make your own copy of any sort of proprietary data that you've stored in a Google workspace or in Salesforce spanning solution allows you to make a backup of that data that you have stored in the cloud uh so let's take a look at the first sections that we identified definitions and usage all right so this section offers a precise legal death legal definition and description of all the important terms or items referenced in your license agreement right we recommend that you pay close attention to what is listed uh in the these sections right because these definitions will also include specific version numbers supported operating systems Hardware considerations and so forth hey if it's not listed here you don't get access to it for instance If You're Expecting upgrades and support and they're not covered in this in these sections you will have to create another contract to pay your supplier to provide you with the needed or required technology so if support isn't covered in definitions and usage guess what you're not getting it so let's take a look at an example from spanning so what you hear are some examples of definitions a little bit dry right Laura and other things that they Define in uh their their license agreement this section of definitions are what's confidential data what do they mean by documentation sow or statement of work they Define that what a user is an order form and other terms right again this is a this is a legal contract so they have to Define all these things in here uh uh next take a moment here to see what is described as units and what you're going to see is I'm going to highlight and read the key parts of these contract agreements just because I wanted to highlight the key ones so this is the usage non-sub-licensable right means you can't take their solution and put it into another solution that you create non-exclusive which means other people can use it revocable which means they can take away rights non-transferable right to use a software so you can't transfer to a different company the ability to use their software okay it is limited to authorized users which is the reason why they Define what a user is you shall not exceed the number of purchased seeds so seeds are also defined and it shall be used for the licensees internal business purposes only right and this kind of emphasizing like hey you can't with based on this contract you can't go out and create a cloud backup service I can't like Laura you and I can't get together and be like hey we think people would love to use a cloud backup service let's go take Spanish tool and use it and sell it not allowed to do that all right now uh again the thing I want to kind of emphasize also here when you look at usage later in the agreement in the section on proprietary rights which I did not highlight the contract is very clear that this software is licensed not sold remember what I said software is intellectual property therefore it's license not sold and that any services that spanning might provide would be on a subscription basis that they are not sold so they are being super super clear that you are only licensing this okay definition or term quite simply this is just when the contract begins and ends but it gets a little bit more complicated than that because we start talking about little different types of dates right and you'll notice here I say hey pay close attention to these dates there's lots of dates you may not be able to read that effective date uh expiration date payment audit periods and termination notice so the effective date is when the con the date the contract begins expiration date date when the contract ends payment is when you need to pay the supplier for the use of the technology uh next audit periods if the who have audit periods in your contract which this one actually does and it highlighted here that means that the supplier can come on site and review your use of the technology and if you are using technology in a way that's not defined you may have they can revoke your right to use the technology remember it's revocable or they can charge you more and then termination notice is how much time you need to give to begin to end the relationship okay so let's take a look at what some examples from spanning okay so here's what we're talking about is that they're talking about terms is defined as periods are actually going in this I like this example of the spanning license agreement because it's not super clean there's a little bit of messiness they have a definition embedded in a section uh talks about the effective date and notice that they said that there's not a termination date they will Define one for you all right three year anniversary of the effective date okay that's fine uh next the section on specific use and sub lice things but sub licenses so there are three types of use typically there's development so you can get a license to use something in a development environment there is another uh use which is quality assurance or verification so basically hey I want to assess the technology before using it right and then there's finally which is like a commercial use like hey I you can use this in commercial products one of the things I want to make super clear is have to confirm how you use the technology right and so this picture I showed this recently to some colleagues they really liked it the idea here is that unless your license agreement says that you can use the cat in the box right you can you know for instance you have this cool component and it's represented by the cat let's get it from the supplier if you don't have the right to sub license that component you cannot take that component that you get supplier and put it into another solution right you can only put it into your solution and if you want the ability for your product to exist in another solution right you need to ask for permission from your supplier you need to ask for permission from your supplier to use that cat in a different box right and this let's take a look at what spanning says about sub licensing foreign so you get one copy for backup or test purposes right you can only deploy or possess the number of copies that are expressly specified on the order form and I think we saw earlier right they talked a lot about non-sub licensable all right again this is a legal agreement right and this is how they're describing its use you can you could only have a number of copies that are equivalent to what's on the order form except for one copy made for backup or test purposes all right and then here we're talking here non-sublightable non-uh exclusive revocable non-transferable right so in this case spanning is like you are not allowed to sub license or technology in any way form or you'll be in violation of the agreement all right so termination right one party May and so termination talks about this idea that uh how do we end the relationship right and one party May breach the agreement due to Performance reasons right maybe I'm bot spanning and I only bought 10 licenses I am using 50. or uh maybe spanning is not providing a solution that's performant and so it sort of it maybe has lots of bugs or quality decreases right so termination allows one party to breach but oftentimes there are remedies enumerating the contracts just because there's a breach of the contract there sometimes are like Clauses which will say well you know each party has opportunity to rectify the breach uh sometimes contracts are terminated when there's a substantial change in control there's a bankruptcy so maybe spanning just goes out of business or the Purdue or they no longer produce the technology so spanning says listen We're Not Gonna We're Not Gonna support this anymore that's very common with software because certain versions become deprecated and the thing though with termination especially if you're in licensing a solution right replacing an end-licensed technology with a new tech like say you know we want to use a new LMS that is a big big undertaking for us on applied Frameworks I've already replaced one LMS and went through that process learning management system I wouldn't do it again or growing your own like say we say you know what we can build our own learning management system it always takes longer than planned so even though that there isn't uh uh learning man uh a termination clause for remedies it's not all you know sometimes it's better to stick with the technology so an LMS is called a learning management system it's a platform in which to uh engage with learners asynchronously for people who might be unfamiliar with that term all right so they talk about termination for spanning so let's take a look at the really easy one section B the end of a term that's not renewed right so at the end of the contract they just say hey we're not going to renew that's termination right or you could say hey you know what 30 days following written notice of any material breach so you can end the contract but you have to have written notice right let's uh and oh oh that's one of my comment here so it's references sections two or three by the licensee so what did what were some examples so I looked in the contract here it says uh exceeding the number of users specified in the order form that would be an example of the material breach having multiple copies of software using the software outside of internal business purposes reverse engineering the product right so you're not allowed to try to reverse engineer spanning solution so you can't purchase Span in solution with the idea of like hey if we buy this we can kind of uncrack its code object code no it can't do that creating a derivative work so my example Laura and I like hey we want to create a new business to create uh uh cloud backup solution and at its core will be spanned in solution no can't do that hacking license keys and also violating U.S export laws right most software license agreements especially with tech sensitive technology are governed by federal export laws all right so real simple this section here how much does it cost and this wears where things can get tricky right and the tricky thing is that when you in licensed technology from A supplier they have their own business model right their own value exchange model in which um they want to make money and so you want to make sure that your value exchange model of your software enabled solution is compatible with the value exchange model of your supplier solution or that ideally that they're harmonized or at least they can work together if there's if there's a disk they're discontinuous then you may not be able to leverage that technology in your solution you may have to build your own solution um good example that I like to use is thinking about the idea of uh we want to create a streaming service let's say that streaming service is going to be uh you know show movies a variety of movies uh classic movies but maybe kids movies right but and we want to get and we want our customers to pay what's called a time-based access 19.99 a month great okay that's good but maybe the library of content that we want to get right the coolest science fiction movies or the coolest superhero movies in order to license that technology uh that supplier says hey you know you need to pay us a royalty basically a transaction fee right if that transaction fee is sufficiently high right that may the cost associated with consuming that content from that Library could outweigh the money I collect from my time-based access the 1999 per month so yeah let's just have to make sure that the two match up as a product on our product manager and here's an example here uh from spanning and notice here right software like based on software license and service purchases purchased not actual usage right doesn't matter if you buy a hundred licenses you only use two too bad uh non-cancelable non-refundable right so we signed a contract for 100 licenses and then later we say oh no we don't want to do that or we want to get a refund of 30 too bad and you can't decrease right that's the contract renewal this is pretty straightforward what happens when the contract ends when the time runs up well is this something that you want you want to be on the lookout for automatic renewals so it seems convenient as a consumer like oh yeah as a customer I have automatic renewals like LinkedIn does automatic renewals uh if I am in licensing technology from my software enabled solution and it's core to my uh the delivery of my value to my customers Court of profitability sure automatic renewal is great let's see how spanning solves this problem and I I just picked spanning at random I was trying to find an example of something to download as a PDF and if you go back to the slide on spanning there's a little bitly tag there you can download their license agreement read it on your own so here automatic renewal of the term equals the length of the previous term all right so if we had a one-year contract automatic renewal is one year if we had a three-year contract it automatically renews for three years and remember it's non-cancelable non-refundable you can't decrease the number of licenses that you have it's based on seats not usage right and so let's say we had a big company we had 200 licenses for spanning right went through some downsizing some economic problems because we need we only need 50. but we had automatic renewal that means that we would be still have to pay for 200 licenses to automatic renewal the other thing which is really really interesting here is they automatically build in a five percent increase on the new term plus any increase in the Consumer Price Index and in the United States recently there's been a lot of inflation right now right I looked at what this would be so from the U.S Bureau of Labor Statistics that is 6.5 so if you had an automatic renewal with spanning right it the total is 11.5 percent that's a lot that you may not want to be paying on an automatic renewal so read very carefully around automatic renewals uh and then this is other sections territories non-compete deployment restrictions and marketing requirements territory is sometimes related to uh you know you want to read these sections carefully where you can use the solution or any restrictions you might want to put on the customer on however they use it non-compete right are you able to compete in the same space by using it uh marketing requirements that is more with respect to a classic one is Intel inside right there were a lot of times you know you know people would say hey we have the Intel chip so that's a marketing requirement uh these are some things that you think you want but you probably don't which is exclusivity generally you don't want to have ex you think it might be valuable for exclusivity on a certain solution or component or access to the source code the thing with the source code here is okay so you get the source code what are you going to do with it so sure it's nice if it's in the contract but if the supplier goes bankrupt you have access to the source code it's not really going to help you because do your engineers know the programming language are they familiar enough with it to get it up to speed so source code you know it's a nice thing to put in a contract but may not really be that relevant and that brings us to the end so Laura what sort of questions we got no you're unmute sorry yeah I think some of them might have been answered already um and I know we've lost Sora so we can oh let's see so you talked about it but it's like really being clear on what the duration and term is of a contract is really important from the you know and I'm going to paraphrase here but if you're the creator of the software enabled solution be very intentional about what the term is that you're granting to your customer for whatever money is exchanged has to be really clear and I think maybe sometimes the I can imagine where the term and the contract doesn't actually match how the software behaves in the market you know right so when you're at the end of the term does the software just stop working yeah right or does it never stop working in your end of the term and you have to manually go police the systems that you've built and so you'd mentioned it earlier but having this um systems thinking approach means that what sounds good and easy in a contract may or may not be good and easy to enforce from a software architecture and behavior standpoint right exactly right everything's interrelated so if if you're trying to enforce hey at the end of the license they lose access your developers might be saying well what happens to their data do we delete the data into compliance right there might be some kind of compliant requirement that you retain data for a certain amount of time right so your term can end someone loses access and your engineers are absolutely right to ask well what happens to the data and the answer might be very much tied to what the compliance and Regulatory environment looks like that you operate in which is another Block in the process yeah right and or you may be required by compliance to maintain the data which means you have to you have to put that in your license agreement right that you lose access but their data will be maintained for this amount of period yeah and then on the flip side when you're talking about like like data set Into Your solution that you do have the rights to resell or incorporate in your solution but perhaps you have a term licensing that needs to be renewed periodically and are you remembering that that's the case do you have mechanisms in place to make sure that those renewals are happening or at least reviewed I can also imagine there's a point in time where maybe you're not using them anymore and yet you're still paying them right well yeah that's why sometimes there's these automatic renewals in these license agreements where as a product manager you need to decide do I want this or not and be be and here's the thing with a lot of solution uh solution licenses unless you're super mega they're as is you can't negotiate you can't I can't go to Spanish and be like oh by the way you know I want this and the license agreement right that's not going to happen you've got to be at the mega scale of like the huge tech companies to get your own license agreement so it's your responsibility as a product manager to be aware of these risks like for instance renewal and then to work with the engineers and say hey do we still need this or is it still providing us value is it still is it still profitable yeah um okay so another one that I wanted to talk about a little bit is um when you have performance big you know performance metrics or slas built into your contract that your customers then purchasing from you whatever solution it might be there might be times where while you say you're going to be up 99 of the time and then there's penalties if you're not and the customers kind of call you on that legally and from a business term standpoint it might be enough to like put you out of business what happens if you can't adhere to what you've said you will be able to do right like that could actually happen where the penalties are so great that it puts the company at risk for not having adhered to it right and and so the job of a product manager or product owner is to bottle out that risk so right you you say hey you know what we're up 99.99 uptime great that's awesome right but you have to look you have to do the modeling say Okay worst case scenario we're down here are the penalties can we absorb that right and and I would propose that's the product manager needs to bring up that topic but it is a the decision makers isn't the product manager it's the it's the executive leadership team of that organization would have to make that choice or whoever is the operating Financial Authority at your level because right I don't think Google's going to be making that the the the CEO of Google's make that decision they might drive that down a little bit lower too like but it does bring up kind of an interesting scenario that I remember Luke Coman talking to us about where he was working for one organization where the licensing agreement said in effect and I'm paraphrasing will will support every version of iOS right from the beginning right and they didn't write it in a way that allowed them contractually to stop supporting super old and in fact eventually completely unsupported versions of the OS so they had to renegotiate the contract with their assistant is to say look if we if we don't renegotiate this term and we're required to support you know versions of an OS that might be eight or ten years old we can't do it it's an existential risk for our company like they're it's so difficult that we would probably go out of business if we had to do it so they actually renegotiate every one of their contracts in order to have a more reasonable backward compatibility Clause because they hadn't thought about it when they first built it yeah and I you know people say oh well you know you can't renegotiate a contract uh actually you can that's a good example that's not the only example I've heard of renegotiating a contract I've also heard of another scenario where there was a big uh there was an error on the on the fees huge fees right someone put you know three too many zeros in there and people went back and said hey we we made a mistake we didn't review this uh and and you know if we agreed to this we it's existential we go out of business and we want we're coming to you we want to support you we're not saying we don't want to support the product we just made a mistake and they and a lot of the people are like yeah no problem we don't want you to go out of business right and so they fixed that error and so you can renegotiate these things I mean then you're talking I mean but you got to get the lawyers and the product managers well the product manager notices it right I mean as boring as it may sound it's actually remarkably interesting to read through a contract on both sides and just think about like what kind of impact does this have on your ability for future choices or Revenue choices that you might want to make again it's at systems thinking piece where and what and they it impacts in surprising ways so yeah and that's kind of kind of a summarize here I mean there's three main points one is all the components of the business model of the software enabled solution our system you cannot look at these in isolation right uh and changes made in one area of a software enabled solution are linked to one or more areas and so changing your solution can have could have impact in on your customer license or your pricing uh as a product manager the second point is you must read the licenses for any technology you in license so any component even something simple like a Java Library right or or some type of framework that's fundamental read it right make sure you've read it like okay I most I understand what this is yeah most importantly you need to understand the input those implications to your business model a lot of components you just buy them and you have Perpetual license great and then finally I would say it's your responsibility to create and update the customer license as your solution evolves and review your in license technology as the solution involves every six months or so is what we recommend okay um the product manager's ability to affect things like pricing in this case he was talking about user pricing and how that ends up being impacted by procurement and where it's being sold from and bulk kind of buying agreements and so this is kind of I think gets into the pricing webinar that Jason wrote and so if um actually if you wanna I'll put the link into Chad um actually but go ahead and listen to that but yeah I mean it's a combination of what's the value exchange model what's the actual price and then what are the policy the pricing policies that allow for changes in that to happen so when you talk about like bulk pricing and how that gets um implemented through this system it's again it's a a combination of the value exchange model being defined the price being defined and then policies that impact the ability for people to have flexibility on what price is paid for volume deals for example yeah I think that's a uh uh Jason has three categories different types of discount policies one is uh buyer identification and another one is time timing when you buy allows you to get a discount yeah so yeah so yeah yeah all right so um we'll put a plug in for that one I think if you want to advance the slide Carlton there's a couple of if you wanted to I think I think that's uh which you want to go near the end where we talk about what's coming up yeah I mean we've got just a couple minutes left so we should probably um get close to wrapping yeah so okay so what's next um you know if you want to flip to the next slide I'm curious for those who are here what do you wish we would go deeper on or what else do you want to know The Profit Stream canvas is a uh you know not don't be restricted to what you see here but in case you wanted to be refreshed and some of the things that that we could potentially dive into if you could make a webinar request or a topic request throw it into chat if you have an idea about what you'd like to see and uh then if you want it while people are typing that in um if you want to advance one more here um so the other things that can come next would be the profit streams book is very close to being done in fact I have a pre-release um actual physical thing that looks really fantastic but so we're getting very close to this scene available so if you go to the profitstreams.com um you'll see that we also teach this course um it's a two-day class we've had fantastic feedback on this so far so while it's one of our newer courses it's available and if you want to talk to us about delivering it as a private course we are updating our public course offerings as well but definitely as a private course this is fantastic too so those are two things there and that I think that's probably it and look at that all right well thank you everyone I appreciate the folks that made all the way to the end uh if you have questions on this please send them to myself or Laura uh join our profit students Community we are trying to bring people together we really want to learn and exchange more and uh just stay in touch right Laura yep stay in touch and stay tuned for more we'll be sending out the link to the recording and then updates about future webinars okay thanks everyone and Carlton thank you so much uh this was really cool great talk to you later