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Updated October 9, 2023Given the legal profession’s love of creating new and inventive clauses, there really is no set of fixed cybersecurity warranties. Let’s take a look at some themes you can expect:
The cybersecurity program and details you provided when asked were accurate, truthful, and up to date.
Your systems or products have been validated, audited, or reviewed by a qualified third-party organization and the results were accurately made available on request.
You are not aware of any previous, current, or potential security incidents or risks that may materially affect the organization that have not otherwise been disclosed to the buyer/investor.
The software and components you use to build your product are appropriately licensed, up to date, and managed within their terms and conditions.
Any IP that is included within the deal is suitably protected, and auditable information is available to confirm these protections and any access to these resources, documents, or systems.
Firstly, as mentioned above, this is not something to mess around with. Talk to your lawyer and let them help you navigate this process. It is their job to help you stay safe.
important Some tips on how you respond to a cybersecurity warranty request:
Like any other claim, promise, or decree in contract law, your responses to warranty checks should be in writing. If you do verbally discuss something, ensure that you also document and share a written statement (and that the two statements match).