Technology Replacement Clause Requires Actual Replacement
Client Alert | less than 1 min read | 09.28.10
Some technology contracts have included "replacement" clauses which put limits on the agency's use of its termination for convenience power to flip to another vendor simply to get a better price. The Federal Circuit in McHugh v. DLT Solutions, Inc. (Sept. 23, 2010), held that, when the agency in such a clause had only agreed not to "replace" the leased software with "functionally similar equipment and/or software" for one year after termination or expiration of the lease, it did not breach when it did not install the leased software and continued to use its prior software.
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Amici Rally Behind Liberty Global, Urging Tenth Circuit to Rein in Economic Substance Doctrine
Following the 10th Circuit's April 21, 2026, decision affirming the disallowance of Liberty Global’s $2.4 billion deduction under the codified economic substance doctrine, I.R.C. § 7701(o), Liberty Global filed a petition for panel rehearing or rehearing en banc on June 5, 2026. That petition has since drawn significant amicus support from various industry groups representing large taxpayers, as discussed below.
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EU Steel Overcapacity Regulation: New Permanent Measure in Force from 1 July 2026

