Software licence agreement

What is a software licence agreement and when should you use it?


A software licence agreement is an agreement between a company and its customers for use of that company’s software.

It allows customers to use the software and details exactly how they can use it.

Before any software can be installed, it has to be legally licenced.

Otherwise, it would be considered a breach of copyright law to use the software.

That’s what a software licence does.

It allows a business or consumer to use software under licence from the owner of that software.

The owner of the software retains complete ownership of the product and controls its use as the licence holder.

This is a straightforward software licensing agreement, designed for the granting of licences to businesses (as opposed to consumers).

The document is a traditional “agreement”, and should be signed by or on behalf of both the licensor and the licensee.

The core provisions of this agreement cover the term of the licence, the scope of the licence, licence charges and payments, limitations of liability in relation to the use of the software, termination of the licence agreement for cause or convenience, and standard boilerplate clauses.

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