Do I lose any MITEL license when I lost a phone (MITEL 5312/5340)?

[rprprp]

Hello,

We've been forced to lease hundreds of same MITEL phones for the last 10 years; due to an absurd 5 year auto renewal contract someone signed in 2010.

We are finally getting out of the contract but the lessor is now asking $299 for each lost/broken MITEL 5312 and $499 for each MITEL 5340 phones.

The lessor said that the amount is only half of their regular prices and that each lost phone have MITEL license in them.

I thought this made no sense but since I'm not really familiar with MITEL system I wanted to hear some explanation from MITEL experts.

We were using Mitel 3300 ICP and MCD IP Phone licences(52001151) if that matter.

Thank you.

[acejavelin]

I guess this would depend largely on your lease agreement terms, but to Mitel the licenses are not tied to specific phone, but to the application record of the phone system itself.

I have a real problem with this demand from your vendor, unless it is specifically laid out in the terms of the agreement. A refurbished 5312 is about $50 and a 5340 $80-$100... Even new the 5312 is about $180 and the 5340 has been discontinued for several years and replaced by the 5340e which is around $250-$300 new.

Your phone system and those licenses are quite ancient as well, that licensing model was phased out a while back, like 7 or 8 years ago roughly...

Honestly, I don't know how much they are going after you for, but if it is a really big amount I would try to negotiate a settlement that is agreeable, or contact an attorney.

DISCLAIMER: This is my personal opinion and information from some quick Google searches. Legally it would depend on the terms of your lease and it's termination conditions... but in this case I would say you have likely paid for your equipment 10 times over, and you may have a legitimate legal grounds to get out of this. Most leases we see are not perpetual, and have a fixed term with a $1 buyout at termination of the lease, so I could be way off base here too.

[rprprp]

Thanks for the answers!  This clears a lot of confusions.  The lease agreement terms states that we'll have to pay them according to current market price at the time of lease end but the vendor has the right to set the market price.  That market price was set at $299 for 5312 and $499 for 5340, but when we asked for a proof of price determination, they just said that license fees are also included in the prices.  Well, now that my confusion around the license is clear, I'll pitch them some other numbers.  Thanks!