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Out of the box and into the courthouse
April 9, 2008
It seems that marketing buzzwords can land you in legal trouble. As reported in the April 8 Wall Street Journal, “SAP AG is being sued for failing to deliver an ‘out-of-the-box integrated end-to-end solution….’" Continues Ben Worthen, the story’s author, “Amazingly, the meaning of these buzzwords [is] at the heart of a claim seeking more than $100 million.”
It’s interesting that the vagueness of a phrase like “out of the box solution” could lead to litigation. Being too specific can also get business people in trouble. In an opinion piece titled “Making Business a Crime” in the April 9 Wall Street Journal, criminal defense lawyer Harvey Silverglate cites statements issued by Bear Sterns, including one to the effect that "balance sheet, liquidity and capital remain strong." Such claims turned out to be overly optimistic, and, writes Silverglate, “The Department of Justice has reportedly launched a criminal investigation into these public statements, just as [it has] done in recent years to other professionals who have engaged in seemingly routine requirements of their job.”
If there’s a lesson in all this, it’s be clear, but be accurate. And as Worthen at the Journal points out, we might end up with a legal definition of "integrated end-to-end out-of-the-box solution."
H/T to Jon Titus for calling my attention to the Journal article.
Update: I elaborate on this topic in the editorial "Be careful what you promise" in the May 1 edition of EDN.
Posted by Rick Nelson on April 9, 2008 | Comments (0)
