Executive Clarity · SAP Contract Terms
Affiliate Use
What it governs
Whether group companies may use the licensed software, and on what basis.
Why SAP moves on it — or doesn't
Standard order-form wording bars using the licence to run an affiliate's business where that affiliate holds its own SAP agreement - and keeps the bar in place even after the affiliate's agreement expires. In a group structure this clause is where audit exposure is built.
The lever
Negotiate a defined affiliate group by ownership threshold, with a stated mechanism for entities joining and leaving on acquisition or divestment.
Before you rely on this. A judgement, not legal advice. SAP's standard terms change — verify the current wording of this term in the standard documents published at the SAP Trust Center before using it in a live negotiation.