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Governing Law; Dispute Resolution |
While lawsuits between database licensors and library licensees are rare, it is nonetheless wise to consider how to resolve disputes. Dispute resolution provisions address whether the parties will try arbitration or mediation instead of law suits in a court.
Governing law and venue provisions allow the parties to decide ahead of time what state's law will govern interpretation of the contract and where suits must be filed.
Governing law is particularly relevant in disputes. Because parties (and
their lawyers) are more familiar with the laws of their home state, parties
usually want their state's law to apply to any dispute involving the agreement.
For libraries that are part of a state institution (for example, the
Sometimes parties also plan for the effect a dispute will have on continued access to licensed materials. For example, the parties could provide that "in the event of a dispute, the licensee will pay its fees into an escrow account pending resolution of the dispute in exchange for continued service." Licensees should not hesitate to add language, in plain English, that gives them the rights they need.
Go to:
· Examples of specific contract language
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