Software Distribution License for Germany

Software Distribution License Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions under which a software owner (licensor) grants distribution rights to another party (distributor). The agreement covers essential aspects including license scope, territorial rights, pricing models, quality control measures, support obligations, and intellectual property protection. It ensures compliance with German commercial law, copyright regulations, data protection requirements (GDPR), and competition laws while providing a clear framework for software distribution relationships.

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What is a Software Distribution License?

The Software Distribution License agreement is essential for companies seeking to expand their software distribution channels in Germany and potentially across Europe. This document is specifically designed to comply with German legal requirements, including the Bürgerliches Gesetzbuch (BGB), Urheberrechtsgesetz (UrhG), and relevant EU regulations such as the GDPR. It's typically used when a software company wants to authorize third parties to distribute their software products, establishing clear terms for licensing, distribution rights, revenue sharing, and operational responsibilities. The agreement addresses crucial aspects such as intellectual property protection, quality control, support obligations, and territory restrictions, while ensuring compliance with German commercial and competition laws.

What sections should be included in a Software Distribution License?

1. Parties: Identification of the licensor and distributor, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the software, and purpose of the distribution arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Software, Territory, Intellectual Property Rights, etc.

4. License Grant: Scope of distribution rights, permitted uses, and restrictions on the license

5. Distribution Rights and Obligations: Specific rights and responsibilities of the distributor, including marketing, sales, and reporting requirements

6. Intellectual Property Rights: Ownership of IP, protection measures, and handling of infringement claims

7. Payment Terms: License fees, royalties, payment schedule, and reporting requirements

8. Quality Control: Standards for software distribution, packaging, and presentation requirements

9. Support and Maintenance: Terms for technical support, updates, and maintenance services

10. Confidentiality: Protection of confidential information and trade secrets

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

12. Data Protection: GDPR compliance requirements and data handling obligations

13. Warranties and Indemnities: Software warranties, performance guarantees, and indemnification provisions

14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

What sections are optional to include in a Software Distribution License?

1. White-Labeling Rights: Terms for rebranding and redistributing the software under distributor's brand

2. Source Code Escrow: Provisions for source code protection and access conditions

3. Territory Restrictions: Specific geographical limitations and territory-based requirements

4. Minimum Purchase Requirements: Minimum order quantities or revenue commitments

5. Marketing Obligations: Specific marketing commitments and brand guidelines

6. Export Control: Additional provisions for international distribution compliance

7. Sub-Distribution Rights: Terms for appointing sub-distributors or resellers

8. Training Requirements: Mandatory training programs for distributor's staff

What schedules should be included in a Software Distribution License?

1. Schedule 1: Software Description: Detailed technical specifications and functionality description

2. Schedule 2: License Fees and Royalties: Detailed pricing structure, payment terms, and calculation methods

3. Schedule 3: Service Level Agreement: Support and maintenance service levels and response times

4. Schedule 4: Territory Definition: Detailed description of authorized distribution territories

5. Schedule 5: Technical Requirements: Minimum technical requirements for software distribution

6. Schedule 6: Reporting Templates: Standard forms for sales reporting and royalty calculations

7. Appendix A: Brand Guidelines: Software branding and marketing requirements

8. Appendix B: Support Procedures: Detailed procedures for technical support and issue escalation

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

Jurisdiction

Germany

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Software Development

Enterprise Software

Cloud Services

Technology Distribution

E-commerce

Telecommunications

Manufacturing

Healthcare Technology

Financial Technology

Retail Technology

Educational Technology

Relevant Teams

Legal

Sales

Business Development

Partner Relations

Compliance

Commercial Operations

Software Development

Product Management

Channel Management

Contract Administration

Partner Success

Relevant Roles

Chief Technology Officer

Legal Counsel

Software Licensing Manager

Channel Sales Director

Business Development Manager

Commercial Director

Partner Relations Manager

Software Distribution Manager

Compliance Officer

Contract Manager

Sales Operations Manager

Partner Account Manager

Software Rights Manager

Distribution Network Manager

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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