Software license agreement templates are documents that serve as contracts between your company and your clients and customers, allowing them to use the software that your company developed or has the rights to. It is based on the standard license agreement template. The software license agreement lays out in detail where and how your clients can install the software. A well-crafted software licensing agreement conveys the client’s ability, or lack thereof, to copy, modify, or redistribute the software.
Software license templates are purposed to protect you from copyright infringement. Therefore, you must exercise caution and carefully draft this agreement’s language and contents. Our professionally created software license agreement template offers you a comprehensive outline that proves quite useful, both for your company as well as your clients. The license agreement template provides you with the essential clauses, along with the right language, so that it can achieve its purpose.
As with any company engaged in software development, your company is probably also trying to build software that may generate revenue through licensing. You must also make sure that your income stream through licensing is properly safeguarded. This is precisely what a meticulously crafted software license agreement does. It protects the revenue that you are earning through licensing. An effective software license fulfils the following purposes:
An apt software license allows enough room for the client to be able to install and utilize the software on one or more computer systems, and copying and executing the software if needed, like for the rational purpose of backup, etc. Software licensing agreement templates should also be adequately flexible to permit some modifications that the client may require for the software’s optimum usage.
Thus, in terms of the scope of the software license agreement, the following points are important to remember:
Our software license agreement template is designed to provide you with a precise outline in the desired language, laying out the scope of the software license that will protect your interests while also conveying it in an understandable manner for your client.
This section of the software license agreement template should provide detailed information on the products and services it delivers. For instance, if the client will require some training to execute the program, then you will have to provide it, and therefore include when, where, and how the training will be provided.
Apart from training, maintenance and support are other aspects of services, generally rendered under a software license.
Our software license agreement template will guide you on how you can include terms of maintenance in your software license. You should either provide the client with the right to support, and maintenance in the software license or an entirely separate software maintenance agreement should be signed alongside the software licensing agreement template.
If you decide to undertake a separate contract with the client, you may find our software maintenance agreement template useful in crafting the deal efficiently and effectively. Usually, the maintenance services are rendered for a certain period, like 3 or 5 years, with a fixed expense.
There are some scenarios where you may be required to provide the source code to the client. For instance, if the system is expensive, or modifications are unavoidable, or if the client is demanding the capability to perform changes, you may have to deliver the source code. You must clearly define the way the client can utilize the source code. You can include the specifics in the software license agreement template or draft a separate source code agreement. By using our source code license agreement template, you would be able to formulate a coherent and professional agreement that would prevent the client from abusing the source code.
A software license agreement is supposed to provide details about the rights being provided to clients regarding disclosure and access. You can choose to provide specific guidelines in the software license, access the software within the client’s company, and the obligations of those individuals regarding the disclosure policy.
If there is a need for a formally written non-disclosure agreement, then you can also draft a separate contract with the prospective licensee. To draft an effective non-disclosure agreement for a prospective licensee, you can use our template, built explicitly for the purpose. You must consider the requirements of the client before drafting a non-disclosure agreement.
One of the prominent clauses to be included in software licensing agreements is regarding the licensor’s license in the event of a breach of contract on the licensee part. Generally, you must provide the client with a minimum of 30 days advance notice, along with an opportunity to make amends in the event of a breach. Only then can you proceed to terminate the license.
You can include the specifics in the software license agreement template by using our template, which will guide you on how to insert terms of termination in a manner that will protect you against a breach.
Here you will describe the meaning of the terminology used throughout the agreement.
This is the main section that would describe the license and will include all the important clauses you want to include in the software license agreement.
Contents of this section will include clauses such as:
In this section, you will cover the channels of payment, along with the details of the licensing fee.
Contents of this section will include details regarding:
This section will primarily cover clauses such as non-disclosure to ensure confidentiality.
Contents of this section would include:
This section will cover the warranty period’s details and the specific corrections/remedies delivered under the license.
The contents of this section include:
This clause will cover details of the licensor’s obligation to inform the licensee if the license is infringing upon registered copyright or patent in any country and will also address the process of indemnification in the event of an infringement.
The contents of this section will include:
This section is crucial, as it will help you limit your liability in the case the licensee claims or lawsuits.
Under this section, you will lay out the terms and conditions under which you will be entitled to terminate the license.
Contents of this section will include:
Apart from the above, there are many other nuances that you may miss while drafting the agreement. Therefore, we recommend you use our professionally developed license agreement templates to prepare an agreement that would protect the interests of both your company, as well as your clients.
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