The Procurement Officer should negotiate that CERN’s liability be capped at a commercially acceptable level, taking into account the specific risks associated with the licence in question. It is good practice to negotiate a reciprocal liability cap i.e. that CERN’s liability is capped at the same amount as the contractor’s liability (which is typically quite low for licence agreements).

Should the Agreement have a duration of multiple years, it is common practice to set out a liability cap of the paid and payable fees during that duration.