Third Party Software License Agreement for Nigeria

Third Party Software License Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes the terms and conditions for licensing third-party software through an intermediary to an end user. The agreement addresses key aspects including license scope, usage rights, fees, intellectual property protection, warranties, and compliance with Nigerian regulations including the NDPR 2019 and Cybercrimes Act 2015. It provides a framework for managing the three-way relationship between the original software owner, the intermediary licensor, and the end user, while ensuring proper protection of all parties' interests and compliance with Nigerian technology and data protection laws.

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What is a Third Party Software License Agreement?

The Third Party Software License Agreement is essential when software is licensed through an intermediary rather than directly from the original software owner to the end user. This document is particularly important in the Nigerian market where software distribution often involves local resellers or implementation partners. The agreement must comply with Nigerian legislation, including the Copyright Act, Cybercrimes Act 2015, and NDPR 2019, while addressing the complexities of a three-party software licensing arrangement. It covers critical aspects such as license scope, usage rights, liability allocation between parties, payment terms, support obligations, and data protection requirements. This type of agreement is commonly used when international software companies enter the Nigerian market through local partners or when Nigerian software companies utilize third-party components in their solutions.

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

1. Parties: Identification of the licensor, licensee, and any third-party software provider

2. Background: Context of the agreement, relationship between parties, and brief description of the software

3. Definitions: Detailed definitions of technical terms, capitalized terms, and key concepts used throughout the agreement

4. License Grant: Scope of license, usage rights, restrictions, and territory limitations

5. License Fees and Payment: Payment terms, fee structure, payment schedule, and late payment consequences

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

7. Confidentiality: Protection of confidential information, obligations, and exclusions

8. Data Protection and Privacy: Compliance with NDPR 2019, data handling obligations, and privacy requirements

9. Warranties and Representations: Software performance warranties, authority to license, and compliance warranties

10. Limitation of Liability: Caps on liability, exclusions, and indemnification provisions

11. Term and Termination: Duration, renewal terms, termination rights, and post-termination obligations

12. Support and Maintenance: Service levels, maintenance schedules, and technical support provisions

13. Audit Rights: Right to audit usage, compliance verification procedures

14. General Provisions: Standard boilerplate clauses including governing law, dispute resolution, and notices

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

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

2. Hardware Requirements: Include when specific hardware is required for software operation

3. Source Code Escrow: Include when source code escrow arrangements are required for business continuity

4. Third Party Components: Include when the software incorporates third-party components requiring separate terms

5. Export Control: Include when software is subject to international distribution

6. Disaster Recovery: Include when business continuity and disaster recovery requirements are critical

7. Security Requirements: Include when specific security protocols or certifications are required

8. Custom Development: Include when custom modifications or developments are part of the license

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

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

2. Schedule 2 - License Fees: Detailed breakdown of license fees, payment schedules, and pricing models

3. Schedule 3 - Service Level Agreement: Performance metrics, support levels, and response times

4. Schedule 4 - Technical Requirements: System requirements, compatible platforms, and technical specifications

5. Schedule 5 - Implementation Plan: Timeline and milestones for software implementation if applicable

6. Appendix A - Authorized Users: Definition and categories of authorized users and access levels

7. Appendix B - Security Standards: Required security protocols, standards, and compliance requirements

8. Appendix C - Support Procedures: Detailed procedures for accessing and utilizing support services

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

Nigeria

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

Education

Retail

Manufacturing

Telecommunications

Professional Services

Government and Public Sector

Energy and Utilities

Media and Entertainment

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Risk Management

Vendor Management

Software Asset Management

Solutions Architecture

Operations

Finance

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software Licensing Manager

Compliance Officer

Information Security Manager

Chief Information Officer

Contract Manager

Business Development Manager

Software Asset Manager

Technology Risk Manager

Vendor Management Officer

Chief Legal Officer

Solutions Architect

Industries
Nigerian Copyright Act (Cap C28, Laws of the Federation of Nigeria, 2004): Governs intellectual property rights, including protection of computer software and programs as literary works. Essential for defining license scope and rights transfer.
Cybercrimes (Prohibition, Prevention, etc.) Act 2015: Provides legal framework for prevention of cybercrimes and protection of critical national information infrastructure. Relevant for security obligations and unauthorized access provisions.
Nigeria Data Protection Regulation (NDPR) 2019: Regulates the collection and processing of personal data. Important for software that may collect, store, or process user data.
Nigerian Communications Act 2003: Regulates electronic communications and telecommunications. Relevant for software that uses communication networks or provides communication services.
Contract Law (Nigerian Common Law and Contract Act): Provides the fundamental principles of contract formation, including offer, acceptance, consideration, and capacity to contract.
Consumer Protection Act 1992: Protects consumer rights and interests. Relevant for software licensed to individual consumers or end-users.
Evidence Act 2011: Particularly Section 84 which deals with admissibility of electronic evidence. Important for electronic/digital agreements and licenses.
National Information Technology Development Act 2007: Provides framework for IT development and regulation in Nigeria. Relevant for software standards and compliance requirements.
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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