A Healthcare Giant's Journey to Evaluate Risk, Strengthen Data Use Licensing Agreements with Third-Party Vendors

What changed

As a result of our findings, the client launched several key initiatives:

• Clearer licensing framework: Redefined licensing terms that precisely delineated rights for both parties, reducing ambiguity and reducing the risk of non-compliance.
• Enhanced compliance mechanisms: Implemented robust data governance and monitoring systems and clarified audit clause language to regularly assess compliance with license terms among primary licensees and third-party users.
• Training programs: Instituted comprehensive training sessions for stakeholders involved in managing or operating under these licenses to ensure everyone understood their roles and responsibilities.

Why this matters in every industry

Third party contract management and related audit clauses exist within the majority of corporate environments as they rely on third parties for a vast array of essential operational initiatives, whether it be, for example, sales channel partners, manufacturing partners, Intellectual property integration partner and many others.  These third-party contracts dictate the terms of use of identified assets between the parties.  The audit clause provides the primary asset owner with a vehicle to monitor the contractual relationship and use an independent party to periodically evaluate the proper use of assets and provide the parties with recommendations to enhance the efficacy of their mutual contractual relationship.