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.
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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."
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
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
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
Relevant legal definitions
Acceptance Date
Affiliate
Agreement
Authorized Location
Authorized User
Business Day
Commencement Date
Concurrent Users
Confidential Information
Documentation
Effective Date
Emergency Maintenance
Fees
Floating License
Force Majeure Event
Initial Term
Intellectual Property Rights
License Key
License Manager
License Pool
License Server
Licensed Materials
Licensor Materials
Maintenance Release
Major Release
Malicious Code
Minor Release
Network
Normal Business Hours
Personal Data
Planned Maintenance
Platform
Renewal Period
Response Time
Security Event
Services
Software
Software Metrics
Source Code
Specifications
Support Hours
Support Services
System Requirements
Term
Territory
Third-Party Components
Update
Upgrade
User Authentication
Usage Data
Usage Reports
Affiliate
Agreement
Authorized Location
Authorized User
Business Day
Commencement Date
Concurrent Users
Confidential Information
Documentation
Effective Date
Emergency Maintenance
Fees
Floating License
Force Majeure Event
Initial Term
Intellectual Property Rights
License Key
License Manager
License Pool
License Server
Licensed Materials
Licensor Materials
Maintenance Release
Major Release
Malicious Code
Minor Release
Network
Normal Business Hours
Personal Data
Planned Maintenance
Platform
Renewal Period
Response Time
Security Event
Services
Software
Software Metrics
Source Code
Specifications
Support Hours
Support Services
System Requirements
Term
Territory
Third-Party Components
Update
Upgrade
User Authentication
Usage Data
Usage Reports
Clauses
License Grant
Usage Rights
Technical Requirements
Implementation
Payment
Performance
Service Levels
Authentication
User Management
Monitoring
Reporting
Intellectual Property
Confidentiality
Data Protection
Privacy
Security
Warranties
Indemnification
Limitation of Liability
Force Majeure
Term and Termination
Audit Rights
Assignment
Compliance
Governing Law
Dispute Resolution
Notice
Amendment
Severability
Entire Agreement
Support and Maintenance
Export Control
Insurance
Disaster Recovery
Business Continuity
Usage Rights
Technical Requirements
Implementation
Payment
Performance
Service Levels
Authentication
User Management
Monitoring
Reporting
Intellectual Property
Confidentiality
Data Protection
Privacy
Security
Warranties
Indemnification
Limitation of Liability
Force Majeure
Term and Termination
Audit Rights
Assignment
Compliance
Governing Law
Dispute Resolution
Notice
Amendment
Severability
Entire Agreement
Support and Maintenance
Export Control
Insurance
Disaster Recovery
Business Continuity
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
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