Things every client should understand about intellectual property agreements

Pilot installation agreements

In a nutshell, Pilot Installation Agreements are commonly either software license agreements or technology license agreements in which the asset being licensed is of such a magnitude that the mere installation of the asset (along with the initial operation of the asset during an evaluation / acceptance period) is a substantial undertaking involving a nontrivial expenditure of time (e.g., six months, two years) and monies on the part of both parties.

Thus, the Pilot Installation Agreement is, in many ways, much like the license agreements referenced hereinabove, except that it also contains a substantial number of provisions devoted to managing the costs and other reliances expected to be borne by each of the parties to the installation. It provides clarity regarding how the parties shall smoothly separate and disengage, if this occurs, at different points in the installation and acceptance process, and the precise amount of monies to be transferred, depending upon a variety of contingencies.