Third Party Software License Agreement for India

Third Party Software License Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions under which a third-party software provider licenses their software to end users or businesses. The agreement covers essential aspects including license scope, usage rights, intellectual property protection, warranties, support services, and compliance with Indian IT laws. It incorporates specific provisions required under Indian contract law and the Information Technology Act, 2000, while addressing data protection requirements and ensuring enforceability within the Indian legal system.

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What is a Third Party Software License Agreement?

The Third Party Software License Agreement is a critical legal document used when a software provider wishes to license their software products to users or businesses in India. This agreement is essential for protecting intellectual property rights while granting specific usage rights to licensees. It must comply with Indian legislation, particularly the Information Technology Act, 2000, the Copyright Act, 1957, and the Indian Contract Act, 1872. The document typically includes detailed terms covering license scope, fees, technical specifications, support services, warranties, and liability limitations. It's particularly important in the Indian context due to specific requirements regarding electronic contracts, data protection, and IT governance.

What sections should be included in a Third Party Software License Agreement?

1. Parties: Identification of the licensor and licensee with full legal names and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Intellectual Property Rights: Ownership of IP rights, protection measures, and infringement provisions

6. License Fees and Payment Terms: Payment obligations, payment schedule, and consequences of non-payment

7. Term and Termination: Duration of the agreement, renewal terms, and termination rights

8. Warranties and Representations: Warranties regarding software functionality, IP rights, and compliance with laws

9. Support and Maintenance: Support services, maintenance updates, and response times

10. Confidentiality: Protection of confidential information and trade secrets

11. Limitation of Liability: Caps on liability and exclusions of certain types of damages

12. Indemnification: Mutual indemnification obligations for various risks

13. Governing Law and Jurisdiction: Choice of Indian law and jurisdiction for dispute resolution

14. General Provisions: Standard boilerplate clauses including notices, assignment, and severability

What sections are optional to include in a Third Party Software License Agreement?

1. Data Protection and Privacy: Required when the software processes personal data or sensitive information

2. Third Party Components: Needed when the software incorporates third-party software or open-source components

3. Professional Services: Include when implementation, training, or consulting services are part of the agreement

4. Service Level Agreement: Required for cloud-based software or when specific performance levels are guaranteed

5. Disaster Recovery: Important for business-critical software or cloud-based solutions

6. Export Control: Required when software may be subject to export control regulations

7. Source Code Escrow: Optional protection mechanism for business-critical software

8. Audit Rights: Include when usage monitoring or compliance verification is required

What schedules should be included in a Third Party Software License Agreement?

1. Schedule A - Software Description: Detailed description of the software, including modules and functionality

2. Schedule B - Technical Requirements: Hardware, software, and network requirements for the software

3. Schedule C - License Fees: Detailed breakdown of license fees, payment schedules, and pricing terms

4. Schedule D - Support Services: Detailed support and maintenance terms, including SLAs if applicable

5. Schedule E - Authorized Users: Definition and number of authorized users or usage metrics

6. Appendix 1 - Third Party Components: List of third-party components and their respective license terms

7. Appendix 2 - Data Processing Terms: Detailed data protection and privacy requirements if applicable

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

India

Publisher

Genie AI

Document Type

License Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Banking and Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Professional Services

Retail

Insurance

Government and Public Sector

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Information Security

Vendor Management

Contract Administration

Software Asset Management

Enterprise Architecture

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software Licensing Manager

Compliance Officer

Contract Manager

Information Security Officer

Technology Risk Manager

Business Development Manager

Enterprise Architect

Software Asset Manager

Vendor Management Officer

Chief Information Officer

Legal Operations 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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