Microsoft sues Community Health Systems about audit

April 5, 2018

Community Health Systems has failed to allow an independent auditor to review its use of Microsoft products, according to a lawsuit the computer software giant filed March 15.

The suit was filed in the U.S. District Court for the Middle District of Tennessee but made public April 4.

Community Health Systems is the parent of Lutheran Health Network.

Microsoft said in the filing that its volume licensing program works with customers employing 500 or more workers. That program’s standard contract provides Microsoft the right to have an independent auditor verify that the customer is complying with copyright and licensing agreements.

That agreement forbids unauthorized sharing of Microsoft products.

According to the lawsuit, “CHS intentionally facilitated the continued use of Microsoft software by” previous CHS subsidiaries or affiliates that were sold as part of the divestiture program CHS implemented to pay down debt.

The new owners should have entered their own agreements with Microsoft, paying the Redmond, Washington-based company for using its software.

Microsoft claims that CHS failed for more than 16 months to produce all the data requested for an independent audit. Taking the Tennessee-based healthcare provider to court was the only way to force it to comply with the contract terms, Microsoft alleges.

The Journal Gazette has the full story

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