Software Reseller Agreement Template for New Zealand
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What is a Software Reseller Agreement?
The Software Reseller Agreement is a crucial document for software companies expanding their distribution channels in New Zealand and potentially internationally. It is used when a software owner wants to authorize third parties to resell their software products, establishing clear guidelines for the relationship while ensuring compliance with New Zealand's Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant technology legislation. The agreement typically includes detailed provisions for pricing, territory definitions, service levels, intellectual property protection, and support obligations. It's particularly important for software companies utilizing indirect sales channels and must be carefully structured to protect both parties' interests while facilitating efficient software distribution.
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About the Software Reseller Agreement
A Software Reseller Agreement is a commercial contract that authorizes third parties to distribute and sell software products on behalf of the original software owner. In New Zealand, these agreements must comply with the Contract and Commercial Law Act 2017 and various consumer protection laws to ensure fair business practices and clear contractual obligations between all parties involved.
When do you need this document?
You need a Software Reseller Agreement when expanding your software business through distribution partners rather than direct sales. This is particularly common when entering new geographic markets, targeting specific industry sectors, or lacking the resources for direct customer acquisition. Software companies use these agreements to leverage reseller networks while maintaining control over pricing, branding, and customer experience. The agreement is also essential when your software requires specialized knowledge or local support that resellers can provide more effectively than your internal team.
Key legal considerations
Critical elements include defining the scope of the reseller relationship, whether exclusive or non-exclusive within specified territories. Intellectual property clauses must clearly state that resellers receive only distribution rights, not ownership of the software or associated trademarks. Pricing provisions should establish wholesale rates, minimum advertised prices, and payment terms to prevent conflicts. Support obligations must specify which party handles customer service, technical support, and software updates. Termination clauses should address notice periods, post-termination obligations, and customer transition procedures. Data protection provisions are crucial given New Zealand's Privacy Act 2020, particularly regarding customer information sharing between software owners and resellers.
Legal requirements in New Zealand
Under New Zealand law, Software Reseller Agreements must comply with the Contract and Commercial Law Act 2017, ensuring clear offer, acceptance, and consideration elements. The Fair Trading Act 1986 prohibits misleading conduct, requiring accurate representation of software capabilities and licensing terms by resellers. Competition law under the Commerce Act 1986 restricts certain exclusive dealing arrangements and territorial limitations that may substantially lessen competition. The Privacy Act 2020 governs how customer data is collected, stored, and shared between software providers and resellers, requiring appropriate privacy safeguards and data processing agreements. Copyright Act 1994 protections mean the agreement must clearly define permitted uses of software and associated intellectual property, preventing unauthorized copying or modification by resellers.
GOVERNING LAW
Applicable law
This Software Reseller Agreement is drafted to comply with New Zealand law. Key legislation includes:
Fair Trading Act 1986: Regulates trade practices and prohibits misleading conduct in trade, ensuring fair business practices between resellers and customers
Commerce Act 1986: Governs competition law and restrictive trade practices, relevant for territorial restrictions and exclusive dealing arrangements in reseller agreements
Privacy Act 2020: Regulates the collection, use, and disclosure of personal information, important for customer data handling between software provider and reseller
Copyright Act 1994: Protects software intellectual property rights and determines how software can be distributed and licensed
Consumer Guarantees Act 1993: While primarily for consumer transactions, some provisions may apply to business transactions, particularly regarding software quality guarantees
Electronic Transactions Act 2002: Governs electronic transactions and digital signatures, relevant for online software distribution and licensing
Goods and Services Tax Act 1985: Governs taxation aspects of software sales and licensing in New Zealand
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