The Perpetual License Agreement is essential for organizations seeking to establish long-term software usage rights under Indian jurisdiction. This document is typically used when a permanent license is preferred over subscription-based models, particularly for business-critical software applications. It addresses key aspects including license scope, IP rights, compliance requirements, and technical specifications, while incorporating mandatory provisions under Indian contract law, the Information Technology Act, 2000, and relevant IP legislation. The agreement is structured to protect both licensor and licensee interests through clear terms on usage rights, warranties, support services, and dispute resolution mechanisms.
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1. Parties: Identification of licensor and licensee with full legal names and addresses
2. Background: Context of the agreement and brief description of the licensed product/software
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the perpetual license, including usage rights and restrictions
5. Intellectual Property Rights: Confirmation of ownership and protection of IP rights
6. License Fee: Payment terms and conditions for the perpetual license
7. Warranties and Representations: Warranties regarding ownership, performance, and compliance with laws
8. Confidentiality: Protection of confidential information exchanged between parties
9. Indemnification: Indemnification obligations of both parties
10. Limitation of Liability: Limitations on liability and damages
11. Term and Termination: Conditions for termination despite perpetual nature
12. Governing Law and Jurisdiction: Specification of Indian law and jurisdiction
13. General Provisions: Standard boilerplate clauses including notices, assignment, and severability
1. Support and Maintenance: Terms for ongoing support services if offered separately
2. Source Code Escrow: Include if source code escrow arrangements are required
3. Data Protection: Include if personal data processing is involved
4. Export Compliance: Include if cross-border usage or transfer is contemplated
5. Third Party Software: Include if third-party components are part of the licensed software
6. Training: Include if training services are provided
7. Service Level Agreement: Include if specific performance levels are guaranteed
8. Installation and Implementation: Include if installation services are provided
1. Schedule 1 - Licensed Software: Detailed description of the licensed software and components
2. Schedule 2 - Technical Specifications: Technical requirements and specifications of the software
3. Schedule 3 - License Fees: Detailed breakdown of license fees and payment schedule
4. Schedule 4 - Support Services: Details of support and maintenance services if included
5. Schedule 5 - Service Levels: Performance metrics and service levels if applicable
6. Appendix A - Authorized Users: List of authorized users or user categories if applicable
7. Appendix B - Deployment Locations: Approved locations for software deployment if location-restricted
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