Floating Software License Template for Canada

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Key Requirements PROMPT example:

Floating Software License

"I need a Floating Software License agreement for our CAD software that allows up to 50 concurrent users across our three Canadian offices, with the option to increase to 75 users from January 2025, including provisions for remote access and automated usage reporting."

Document background
This Floating Software License agreement is designed for situations where organizations require flexible software deployment across multiple users while maintaining a fixed number of concurrent licenses. It is particularly suitable for businesses seeking to optimize software licensing costs by allowing different users to access the software at different times, subject to a maximum concurrent user limit. The agreement incorporates Canadian legal requirements, including compliance with federal and provincial regulations regarding software licensing, intellectual property protection, and electronic commerce. It addresses key aspects such as license server deployment, user authentication, usage tracking, and reporting mechanisms. This document should be used when implementing floating license arrangements in Canada, especially for enterprise-wide software deployments where the total number of potential users exceeds the number of available licenses.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including full legal names and addresses

2. Background: Context of the agreement and brief description of the software and floating license concept

3. Definitions: Defined terms including 'Software', 'Concurrent Users', 'License Server', 'Authorized Users', etc.

4. Grant of License: Scope of license grant, concurrent user limits, and usage restrictions

5. License Server and Deployment: Requirements and specifications for license server setup and management

6. User Authentication and Tracking: Methods and requirements for user authentication and usage monitoring

7. License Fees and Payment: Payment terms, fee structure, and billing arrangements

8. Term and Termination: Duration of agreement, renewal terms, and termination conditions

9. Licensor Obligations: Software delivery, initial setup support, and ongoing obligations

10. Licensee Obligations: Usage compliance, security requirements, and user management responsibilities

11. Intellectual Property Rights: IP ownership, protection of rights, and restrictions

12. Warranties and Disclaimers: Software performance warranties and limitation of warranties

13. Limitation of Liability: Caps on liability and exclusions of certain types of damages

14. Confidentiality: Protection of confidential information exchanged during the license period

15. General Provisions: Standard boilerplate including governing law, notices, and assignment

Optional Sections

1. Support and Maintenance: Terms for technical support and software updates - optional if covered in separate agreement

2. Disaster Recovery: Provisions for backup licensing in disaster recovery scenarios - needed for business-critical applications

3. Geographic Restrictions: Territorial limitations on software use - needed for geographically restricted licenses

4. Export Control: Export compliance terms - required if software contains regulated technology

5. Professional Services: Terms for additional implementation or training services - needed if professional services are included

6. Data Protection: Specific data protection and privacy terms - required if personal data is processed

7. Source Code Escrow: Source code escrow arrangements - needed for mission-critical applications

8. Audit Rights: Detailed audit procedures - needed for high-value or high-risk licenses

Suggested Schedules

1. Schedule A - Software Description: Detailed description of licensed software components and functionality

2. Schedule B - License Metrics: Specific details of concurrent user calculations and limitations

3. Schedule C - Technical Requirements: System requirements, network specifications, and deployment parameters

4. Schedule D - Support Level Agreement: Support terms, response times, and escalation procedures

5. Schedule E - Fee Schedule: Detailed pricing, payment terms, and fee calculations

6. Appendix 1 - Authorized Locations: List of approved locations for software deployment

7. Appendix 2 - License Server Specifications: Technical specifications for license server setup and configuration

8. Appendix 3 - Acceptable Use Policy: Detailed rules and restrictions for software usage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Engineering

Education

Professional Services

Government

Telecommunications

Research & Development

Biotechnology

Construction

Energy

Retail

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Finance

Operations

Software Asset Management

Vendor Management

Contract Administration

Risk Management

Relevant Roles

Chief Technology Officer

IT Director

Software Procurement Manager

Legal Counsel

Compliance Officer

IT Infrastructure Manager

Software Asset Manager

Contract Administrator

Enterprise Architect

Systems Administrator

Information Security Manager

Procurement Officer

Technology Operations Manager

Vendor Management Specialist

Software Licensing Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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