The Office for the Protection of Competition has decided, new and used software licenses are the same

In the summer of 2020, EGAP demanded a solution based on perpetual Microsoft software licenses. In the tender documentation, EGAP requested the so-called "new" licenses and their registration in the manufacturer's evidence portal. "Novelty is completely irrelevant in case of software licenses (rights to use software) because the law does not wear out or change in any way. Furthermore, registration of the license in the customer account on manufacturer evidence platform is not mandatory" says Mgr. Martin Mgr. Martin Predný, CEO of PREDNY SLM. Therefore, in the interest of fair conditions, PREDNY SLM tried to draw the attention of the contracting authority. "We tried to contact EGAP and explain that if the rules set by the CJEU are met and the entire chain of previous license holders is transparently documented and disclosed, there is nothing to fear. In addition, it is possible to deliver equivalent solution from secondary market at a significantly lower price, "comments Mgr. Martin Predný on the communication effort before the dispute. The estimated value of the contract was CZK 5 485 000 excluding VAT. "In this case, we had prepared an offer for CZK 2 918 150, which would mean a 47 % saving compared to the expected value of the contract," Mgr. Martin Predný points out the possibility of significant savings when obtaining equivalent.

In the proceedings, which lasted more than a year, the Office for the Protection of Competition also dealt with possible risks related to the so-called secondary licenses. The Office pointed out that the potential risks for secondary and new licenses were similar and that the fear of defective performance could not justify a restriction of competition. It was also stated that within the framework of public procurement, the contracting authority has specific tools for risk elimination. "At PREDNY SLM, we always give our customers complete documentation and transparent history disclosing chain of owners that fully demonstrates the transfer of rights to use computer programs. We also cooperate with renowned auditors from the so-called Big Four, who are ready to confirm these facts at any time and thus verify the legality of the entire process. In addition, our parent company has insurance for € 10 000 000, in case of any process errors. Within 16 years being on the market, it was never used, and we have gone through many software audits performed by the software manufacturer, "describes some measures in the transfer procedures of licenses, Mgr. Martin Predný.“ In addition, PREDNY SLM is the only company in Central and Eastern Europe to be listed in Gartner's analysis of so-called secondary licenses," Mgr. Martin Predný notes the Gartner report from January 8, 2021.