A Software License Agreement is a contract between the software developer or vendor and the purchaser of a computer software license that specifies how the software may be used. Software License Agreements are designed to protect the copyright holder by preventing unauthorized use, reproduction, or modification of the software. The Software License Agreement also defines the warranties and support available to the user and defines the limits of the software publisher's liability for any flaws. Software License Agreements are also referred to as End User License Agreements.
Definitions
What does the term "License" mean?

At its most general level, a license is permission to do something that would otherwise be illegal. In the context of computer software, the license grants a limited right to the customer allowing use of the software according to specified terms of use.

What is a Site License?

A Site License allows a business to install one software package onto more than one computer at a particular location, rather than purchasing a separate software package for each computer. It saves time and money for a business with many employees using the same software.

What do the different terms mean under "Acceptance of terms by user"?
  • "On Opening Package Seal" means that when the user (the licensee) opens the software packaging then they agree to the terms of the software license. This form of Software License Agreement would be applicable for software that is sold through retail outlets or through mail-order.
  • "On Registration" means that the user (the licensee) agrees to the terms of the Agreement when they send in the registration information. This form of Software License Agreement would be applicable for software that is sold through retail outlets or through mail-order.
  • "On Installation" means that the user (the licensee) agrees to the terms of the Agreement when they install the software on the first computer. Again this form of Software License Agreement would be applicable for software that is sold through retail outlets or through mail-order.
  • "Upon execution of this Agreement" means that both the licensee and the vendor agree to the terms of the Agreement when they sign the final printed Agreement. This form of Software License Agreement is useful where a vendor and a licensee have entered into a specific agreement to develop unique or custom software.
What is the Governing Law?

The Governing Law will be the jurisdiction selected to control the administration of the agreement. It may or may not coincide with the jurisdiction in which the parties reside. The law of the governing jurisdiction will provide the authority for how the agreement will be applied and enforced.

What is Source Code?

Source Code consists of computer commands written by programmers when creating a program. It is the language of the computer program as created by the programmer, and is the part of the software that humans can read. The Source Code must be translated into a computer-readable form before the computer can execute the commands.

Additional Clauses
What additional clauses could I add?

While the Software License Agreement that LawDepot.com provides is very comprehensive and provides sound protection, this option is available to allow you to tailor the contract to your specific circumstances.

How do I write the additional clauses?

For help with drafting your additional clauses see our Drafting Tips. If you are unsure of what to include in your additional clauses then it is recommended that you consult a local attorney or lawyer for assistance in writing your additional clauses.

Signing and Witnesses
Do I need witnesses to sign the Agreement?

No, it is not necessary for witnesses to sign the Software License Agreement. If the terms of the Agreement will be accepted on execution then only the Vendor and Licensee should sign the document to ensure the license is legally binding. If the terms of the Agreement are accepted on installation, registration or on opening of the purchase, then neither party needs to sign the Agreement.

I do not know when the Software License Agreement will be signed. Can I fill in the date later?

Yes, by selecting 'Unsure' as the date the agreement will be signed, a blank line will be inserted into the Agreement so that you can add the correct date after printing the document.

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