[Back] [Score -2] This type of provision benefits BHS in a number of ways. First, it ensures that General Hospital remains the party liable for payment. BHS has presumably verified the creditworthiness of General Hospital and would prefer to avoid having that liability transferred to an unknown party unless it could also verify that party's financial strength. Second, the party to which General Hospital may assign the software might well represent a potential additional license fee that is lost if the assignment is permitted. Third, the software represents valuable proprietary information of BHS. Certainly, BHS would be justified in refusing to permit assignment of the software to its competitor, ZCT.
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Make the provision apply equally to both parties, not just "Licensee," AND extend the period from one year to two years.