May 26, 2011

 

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Question

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Ken,

We have a quick question. We purchased your audio/video contract and use it on every job. An issue has now come up with a client where we probably won't be doing work for him any more. We put in a home automation system with custom programming. The system is password protected and I don't want to give it up.

My question for you is are we protected with some sort of "intellectual property" clause that is in the contract? I didn't see one but thought I would ask.

What is your input on this?

Thank you,

Lonny

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Answer

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The Standard Audio - Video Contract call for a sale of the equipment. There is no provision for a continued relationship in that contract. This contract [unlike the Standard Monitoring Contract or the Commercial Lease] does not address intellectual property ownership or pass code issues. It seems to me that since the equipment is sold the subscriber is entitled to suffient information to to make whatever changes to programming that he wants to make. Therefore, the pass code should be revealedd.

I assume that dealers are not too concerned that subscribers are going to make changes, but that competitors will be able to "take over" the system. But the Audio-Video contract does not have any continuing relationship for ongoing service, on site or remote, so locking up the equipment would not be appropriate, and in some jurisdictions where this has been addressed, not permitted.

Where systems are leased or subject to service contracts it would be appropriate not to reveal codes.