KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Manufacturer facilitates take over of cloud based account March 30, 2026 ********************* Manufacturer facilitates take over of cloud based account ********************* Ken, I wanted to share a situation that may interest everyone involving a breach of contract and a manufacturer’s role in a cloud account transfer. We have a long-standing relationship with a customer for whom we traditionally installed local recording camera systems. At one specific site, we installed a cloud camera system monitored by a monitoring station and governed by a K&K agreement, which was signed by their security head in coordination with their IT department. Recently, a new IT manager decided to roll out this cloud system to all other locations using a different integrator. He then requested the cloud manufacturer to remove our access to the existing account and transfer it to the competitor. The manufacturer sent a single notification to a generic email address found on our website, one we do not use for communicating with the manufactures (ordering, billing or support), which was flagged as spam and went unseen. Because the account was removed from our control, the monitoring station can no longer monitor the site. I have since notified the new IT manager of the agreement and requested that the manufacturer return the account to us. So far, I have received no response from either party. I would appreciate your perspective on the following: 1. How should I proceed with the customer and the manufacturer? 2. Does the customer’s action constitute a clear breach of contract? 3. How should I handle the relationship with the manufacturer, given we have other accounts hosted on their platform? If you choose to publish this, please keep my identity anonymous ******************* Response ******************* The simplest part of the inquiry is what to do about the subscriber who is under contract, your contract, a K&K Form Agreement. Refer the subscriber to K&K's Collection Department for its breach of the agreement. Let's put aside other considerations you may have, such as other accounts with this subscriber and wanting to maintain a relationship with it. There may also not be sufficient time left on the contract to merit a collection process or action. The manufacturer is another matter. You undoubtedly have a contract with the manufacturer because this is more than a sale of equipment. Here the manufacturer requires the equipment to communicate through the manufacturer's portal before the data is transmitted to the central station or subscriber directly. The manufacturer is in control of the account and can redirect that data anywhere it wants. That's what happened here. You need to read your contract with the manufacturer. It should have some protection for you, preventing a takeover of your subscriber by another company, which the manufacturer would have to be complicit with. There are manufacturers who ordinarily will not permit that kind of takeover of an account. There could be exceptions to standard procedures, for example with the company taking over your account has hundreds or thousands of accounts with the manufacturer and you have 10. But there may be provisions in the manufacturer's contract that prevents it from continuing service to your subscriber without your consent. Your request to restore the account to you has thus far been ignored. You're not willing to rock the boat with the manufacturer, at least not yet; after all it's only one account so far. I think your best options are forget it and move on or send it to K&K Collection Department. *************************** STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
