Perpetual Software Licence for the United Kingdom

Perpetual Software Licence Template for England and Wales

A Perpetual Software Licence agreement under English and Welsh law is a legal contract granting the licensee indefinite rights to use specified software, subject to agreed terms and conditions. This document establishes the permanent relationship between the licensor and licensee, defining usage rights, restrictions, intellectual property protections, and ongoing obligations. It includes provisions for support, maintenance, warranty terms, and liability limitations, all governed by the laws of England and Wales.

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What is a Perpetual Software Licence?

The Perpetual Software Licence agreement is essential when a business needs to secure permanent rights to use software without recurring licence renewals. This comprehensive document, governed by English and Welsh law, covers all aspects of the software licensing relationship, including usage rights, intellectual property protection, support terms, and compliance requirements. It's particularly relevant for business-critical software implementations where long-term access and usage rights need to be secured. The agreement provides certainty for both parties while establishing clear parameters for software usage, maintenance, and dispute resolution.

What sections should be included in a Perpetual Software Licence?

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

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

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Scope and nature of the perpetual licence

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

6. Licence Fees: Payment terms and conditions

7. Warranties and Representations: Guarantees regarding software functionality and performance

8. Limitation of Liability: Scope of liability and limitations

9. Termination: Circumstances for termination despite perpetual nature

10. Governing Law and Jurisdiction: Applicable law and dispute resolution

What sections are optional to include in a Perpetual Software Licence?

1. Data Protection: Required if software processes personal data - includes data processing terms, compliance requirements, and security measures

2. Source Code Escrow: Provisions for source code protection and access conditions - relevant when licensee requires source code security

3. Service Level Agreement: Performance and support standards - applicable when ongoing support is included in the licence

4. Export Controls: Compliance with export regulations - necessary for international licensing arrangements

What schedules should be included in a Perpetual Software Licence?

1. Schedule 1 - Software Description: Detailed technical specifications of the software

2. Schedule 2 - Licence Fees: Detailed breakdown of fees and payment terms

3. Schedule 3 - Technical Requirements: Hardware and system requirements for the software

4. Schedule 4 - Support Services: Details of maintenance and support services if included

5. Schedule 5 - Permitted Users: List of authorized users or user categories and usage limitations

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

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Trade Licence Agreement

An England & Wales legal document permitting use of trade rights while protecting intellectual property and brand value.

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What is a Perpetual Software Licence?

What sections should be included in a Perpetual Software Licence?

What sections are optional to include in a Perpetual Software Licence?

What schedules should be included in a Perpetual Software Licence?

Authors

Alex Denne

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