LoL Ain't So Funny
Posted by Christine DeFazio on Thu, Jan 13, 2011
LoL in today's lingo is the equivalent of "hahahaha" or "hehehe" or however you chose to burst into laughter (some scarier than others). In the world of software escrow LoL isn't (or ain't) something to laugh about. Limitation of Liability (LoL) is something to take quite seriously; in fact, something to scrutinize.
According to businessdictionary.com, limitation of liability can be defined as a written statement that serves as a disclaimer to limit conditions or instances under which the disclaiming party may be held liable for loss or damages (bussinessdictionary.com).
In layman's terms it's the amount of coverage a company is willing to fork out should they make a booboo. As you could imagine, when dealing with intellectual property, LoL is a crucial means of protection. As a developer or end-user you want to know that your deposits are being protected but you also need to know how much your software escrow provider is willing to pay for your creative should something unexpected occur.
When reveiwing an agreement, or even earlier during the shopping process, don't be afraid to speak up and ask about the vendor's LoL. Is there a cap? If so, how much? Why? Get the details and shop around. If you're not watching out for your proprietary information, who will?