Opinion ID: 177367
Heading Depth: 2
Heading Rank: 1

Heading: Breach of the Licensing Agreement

Text: Plaintiffs argue that the district court erred when it granted summary judgment to GreenPoint on the claim for breach of the licensing agreement. They contend that the licensing agreement expressly prohibited any use of the licensed technology that was not explicitly authorized by the agreement itself, and that nothing in the agreement explicitly authorized GreenPoint to give MSYB input access to the technology. GreenPoint responds that MSYB was an independent contractor or agent that could take only those actions with respect to the licensed technology that GreenPoint could take itself, and that nothing in the agreement prohibited such use when it was done exclusively for the benefit of or on behalf of GreenPoint. GreenPoint also argues that the two provisions of the agreement that expressly granted third-party access to Originating Lenders and PeirsonPatterson contemplate the type of input access that GreenPoint granted to MSYB. [8] Because this is a diversity case, we apply Texas substantive law. [9] Beavers v. Metro. Life Ins. Co., 566 F.3d 436, 439 (5th Cir.2009). If no state court decisions control, we must make an ` Erie guess' as to how the Texas Supreme Court would apply state law. Id. (citation omitted). In construing a written contract, the primary concern of the court is to ascertain the true intentions of the parties as expressed in the instrument. J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 229 (Tex.2003) (citations omitted). To achieve this objective, we must examine and consider the entire writing in an effort to harmonize and give effect to all provisions of the contract so that none will be rendered meaningless. Id. (citation omitted). No single provision taken alone will be given controlling effect; rather, all the provisions must be considered with reference to the whole instrument. Id. (citations omitted). Given these rules of construction, we disagree with the district court that our decisions in Geoscan and Hogan Systems permit a court to look past the actual language of a licensing agreement and absolve a licensee who grants third-party access merely because that access is on behalf of, or inures to the benefit of, the licensee. Neither case stands for such an expansive proposition. Rather, Geoscan and Hogan Systems involved the interpretation of licensing agreements that explicitly granted limited rights to licensees to provide general third-party access. See Geoscan, 226 F.3d at 392 (quoting from and relying on the language of the licensing agreement, which expressly allowed the use of the licensed technology by third parties if such use was by and on behalf of Licensee (emphasis in original)); Hogan Systems, 158 F.3d at 322 (quoting from and relying on the language of the licensing agreement, which provided that the licensee could not make the licensed software available to anyone except ... to other persons during the period such other persons are on [Licensee's] premises for purposes specifically relating to [Licensee's] authorized use of the licensed program). The licensing agreement in this case is different. For one, the agreement here contains no provision that generally permits GreenPoint to grant third-party access, whether or not such access would be on behalf of or for the benefit of GreenPoint, and GreenPoint has not pointed to any provision that gives it that right. In fact, the agreement does exactly the opposite; it provides that it does not grant to GreenPoint any right to copy, make, use, have made, sell, support, or sub-license the licensed technology except as specifically provided. In addition, the agreement expressly prohibits transfer or sublicense of the technology; withholds from GreenPoint any ownership or proprietary interest in the technology; and restricts GreenPoint's ability to reproduce or alter the technology, use the technology in competition with Plaintiffs, assign its duties under the agreement to a third party, or confer any right under the agreement upon a third party. Moreover, the agreement imposes upon GreenPoint the duty to take all steps necessary to prevent any third party with which it may do business from time to time from ... acting in any way that is inconsistent with GreenPoint's obligations under the agreement. Because the licensing agreement in this case withholds rights not expressly given, Geoscan and Hogan Systems are of limited relevance, and we therefore decline to interpret the agreement to allow general third-party access on behalf of or for the benefit of GreenPoint. The two provisions that grant third-party access to Originating Lenders (Article III, Section A) and PeirsonPatterson (Article IV, Section A) are consistent with our interpretation of the agreement. First, both provisions explicitly grant third-party access to specific parties, implying that as a general rule, the agreement does not permit third-party access. Second, both grants of access are limited in their scope: PeirsonPatterson's access is confined to only the preparation and review of loan packages in situations where state law requires a licensed attorney's services. Likewise, the Originating Lenders' access is restricted to certain closing documents and disclosure for GreenPoint loans through a customized link on GreenPoint's Web site. Neither provision grants input access to either party. To read into the agreement a general right to grant third-party access when such access would be on behalf of or for the benefit of GreenPoint would be to render these specific and limited grants of access superfluous. The parties' intent in drafting the licensing agreement is clear from the face of the agreement. The evidence in the light most favorable to Plaintiffs establishes that GreenPoint gave MSYB input access. Even though MSYB's access to and use of the licensed technology may have been on behalf or for the benefit of GreenPoint, input access is not authorized by the agreement.