Exclusive Software Licence Agreement for the United Kingdom

Exclusive Software Licence Agreement Template for England and Wales

An Exclusive Software Licence Agreement under English and Welsh law is a legally binding contract that grants exclusive rights to use, distribute, or modify specific software. It provides the licensee with sole rights to the software within defined parameters, preventing the licensor from licensing the same software to other parties. The agreement includes provisions for intellectual property protection, usage rights, payment terms, and obligations of both parties, all governed by the laws of England and Wales.

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What is a Exclusive Software Licence Agreement?

The Exclusive Software Licence Agreement is utilized when a software owner wishes to grant exclusive rights to their software to a single entity. This comprehensive agreement, governed by English and Welsh law, defines the scope of exclusivity, territorial restrictions, and usage rights. It's particularly important for high-value software products where the licensee requires market exclusivity. The agreement typically includes detailed provisions on intellectual property rights, maintenance obligations, warranty terms, and commercial arrangements. This document is essential for protecting both the licensor's intellectual property and the licensee's exclusive commercial interests.

What sections should be included in a Exclusive Software Licence Agreement?

1. Parties: Identification and details of the licensor and licensee

2. Background: Context of the agreement and ownership of the software

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Scope of licence, exclusivity provisions, and territory

5. Intellectual Property Rights: Ownership and protection of IP rights

6. Payment Terms: Licence fees, payment schedule, and related provisions

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information

9. Warranties and Indemnities: Standard warranties and indemnification provisions

What sections are optional to include in a Exclusive Software Licence Agreement?

1. Source Code Escrow: Used when source code protection is required for high-value or business-critical software

2. Professional Services: Additional services provisions when implementation or support services are included

3. Data Protection: GDPR compliance provisions when personal data processing is involved

4. Export Control: Export regulation compliance for international licensing arrangements

What schedules should be included in a Exclusive Software Licence Agreement?

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

2. Schedule 2 - Technical Specifications: Technical requirements and specifications

3. Schedule 3 - Service Levels: Performance metrics and service standards

4. Schedule 4 - Fee Schedule: Detailed breakdown of fees and payment terms

5. Schedule 5 - Support Services: Details of maintenance and support provisions

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

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Copyright, Designs and Patents Act 1988: Primary UK legislation governing software protection as literary works, copyright holder rights, duration of protection, and moral rights

Patents Act 1977: Legislation covering potential patent protection for technical innovations in software and rights of patent holders

Trade Secrets (Enforcement, etc.) Regulations 2018: Regulations governing protection of confidential information and trade secret provisions

Consumer Rights Act 2015: Legislation covering consumer protection provisions and unfair contract terms, relevant if the software license has B2C applications

Contracts (Rights of Third Parties) Act 1999: Legislation governing third-party rights considerations in contractual agreements

Computer Programs Directive: EU-derived legislation incorporated into UK law post-Brexit, specifically dealing with computer program protection

Database Rights: Rights derived from EU Database Directive, retained in UK law post-Brexit, protecting database structures and content

Common Law Contract Principles: Fundamental principles of contract formation under English common law

Competition Law: Legal framework governing anti-competitive practices and market dominance issues

UK GDPR and Data Protection Act 2018: Data protection legislation governing the processing and handling of personal data

Electronic Commerce (EC Directive) Regulations 2002: Regulations governing electronic commerce, relevant if software is distributed electronically

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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