At issue is a volume licensing agreement, meant for organizations with 500 or more users or devices that want to buy various Microsoft services and software licenses under one agreement.
Filed in US District Court, the suit claims CHS entered into numerous computer software licensing agreements over nearly two decades. The agreements, part of the company’s volume licensing program, prohibit distribution, sublicensing, renting, leasing, lending or hosting any of Microsoft’s software.
CHS also agreed to independent audits to verify compliance with the contract terms, the complaint said.
According to the complaint, CHS “intentionally facilitated the continued use of Microsoft software” by organizations it divested, amounting to infringement of Microsoft copyrights. The lawsuit should be a canary in the coal mine alert to healthcare systems that they need to manage their IT networks and digital tools effectively — especially in today’s accelerating world of mergers, acquisitions and divestitures. Merging companies often have distinct IT systems and EHRs that need to be integrated.
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Becker’s Hospital Review quotes the filing:
CHS has been largely not responsive to, if not obstructionist of, Microsoft’s contractual right to an independent verification. CHS has been given every opportunity to comply with the independent verification process, and Microsoft has exhausted its best efforts to resolve this matter without judicial intervention. CHS’s pattern of conduct, including missing numerous mutually agreed upon deadlines and providing incomplete data, demonstrates its unwillingness to comply with its contractual obligation and/or with the independent verification process.
Read the 23 page complaint “Microsoft v CHS”