[IT Legal Experts] Legal Review of Scope of National Government Software Procurement and Subcontract Restrictions

Because of the presence of IT legal experts, they entrusted the legal review to Law firm Veat regarding the scope of participation for large corporations in affiliated IT companies and restrictions on subcontractors for software businesses when undertaking software procurement by national agencies.

Scope of software business participation by large corporations

IT law firm Law firm Veat reviews laws such as the “Software Promotion Act” to protect small and medium-sized software businesses, as participation by large corporations is restricted in principle when a national agency undertakes a software business procurement, and provides detailed examination of whether a large corporation affiliated IT client can participate in the project.

Subcontracting restrictions and exceptions

The “Software Promotion Act” stipulates that in principle, a software business cannot exceed 50% of the business amount in subcontracting when it concludes a contract with a national agency. Accordingly, re-subcontracting is also restricted. However, when necessary, re-subcontracting is possible when it requires new technologies or specialized technologies, and there are no separate exceptions in this case.

In software procurement projects by national agencies, it is important to deeply understand IT-related regulations. Because the “Software Promotion Act” has clearly defined standards, it is important to consult with and thoroughly examine it with an IT legal expert with extensive experience and abundant expertise.

IT-specialized Law firm Veat is an IT law firm with a large number of IT legal experts and engineers who provide legal advice to various IT companies, and based on this, provides professional legal advice on IT and software-related legal issues.

If you would like IT-specialized legal advice from IT law firm Law firm Veat, please feel free to contact us at any time.

Thank you.

Law firm Veat