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Commercial Software License

Commercial Software License Template for Philippines

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Key Requirements PROMPT example:

Commercial Software License

"I need a Commercial Software License agreement for enterprise-wide ERP software deployment to 500 users, including source code escrow provisions and 24/7 support services, with implementation to begin March 2025."

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Document background
The Commercial Software License agreement is essential for businesses operating in the Philippines that wish to license software products for commercial use. This document is specifically designed to comply with Philippine legal requirements, including the Intellectual Property Code, E-commerce Act, and Data Privacy Act. It serves as the primary agreement governing the relationship between software providers and their commercial users, detailing crucial aspects such as license scope, permitted uses, territorial restrictions, and compliance requirements. The agreement is particularly important in the Philippine context where software licensing must align with local consumer protection laws and regulatory requirements while protecting the intellectual property rights of the software owner.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including their legal status and principal places of business

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

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

4. Grant of License: Scope and nature of the license, including usage rights, restrictions, and territory

5. License Fees and Payment Terms: Pricing, payment schedule, and payment methods

6. Term and Termination: Duration of the license, renewal terms, and circumstances for termination

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

8. Warranties and Representations: Standard warranties regarding software functionality, ownership, and non-infringement

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

10. Confidentiality: Protection of confidential information and trade secrets

11. Support and Maintenance: Terms for technical support, updates, and maintenance services

12. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction for dispute resolution

13. General Provisions: Standard boilerplate clauses including force majeure, entire agreement, and amendments

Optional Sections

1. Data Privacy and Protection: Required if the software processes personal data, ensuring compliance with the Data Privacy Act

2. Source Code Escrow: Optional protection for licensee through source code escrow arrangements

3. Service Level Agreement: Needed for software provided as a service (SaaS) or with specific performance requirements

4. Disaster Recovery: Required for business-critical software applications

5. Export Controls: Necessary if the software may be subject to international trade restrictions

6. Training and Implementation: Include if the license includes training or implementation services

7. Audit Rights: Optional clause allowing licensor to verify compliance with license terms

8. Third-Party Software: Required if the software incorporates third-party components

Suggested Schedules

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

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

3. Schedule C - Service Level Requirements: Performance metrics, response times, and service standards

4. Schedule D - Support Services: Details of support and maintenance services, including response times

5. Schedule E - Authorized Users: Definition and limitations of authorized users and access rights

6. Schedule F - Security Requirements: Security standards and protocols to be maintained

7. Appendix 1 - Technical Requirements: Minimum system requirements and technical specifications

8. Appendix 2 - Implementation Timeline: Project timeline for software implementation 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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance
Affiliate
Authorized Users
Business Day
Confidential Information
Documentation
Effective Date
Error
Fees
Force Majeure Event
Initial Term
Intellectual Property Rights
License Key
Licensed Software
Maintenance Services
Personal Data
Professional Services
Security Breach
Service Level Agreement
Software Updates
Source Code
Specifications
Support Services
System Requirements
Term
Territory
Third-Party Software
User Credentials
Virus
Work Product
Working Hours
Designated Equipment
Disaster Recovery Plan
Implementation Services
License Metrics
Maintenance Release
Major Release
Minor Release
Modification
Object Code
Permitted Purpose
Software Interface
Technical Requirements
Training Services
Upgrade
User Documentation
Clauses
Grant of License
License Restrictions
Intellectual Property Rights
Payment Terms
Delivery and Installation
Acceptance Testing
Support and Maintenance
Service Levels
Warranties
Indemnification
Limitation of Liability
Confidentiality
Data Protection
Security Requirements
Term and Termination
Force Majeure
Assignment
Audit Rights
Dispute Resolution
Governing Law
Insurance
Non-Solicitation
Notices
Entire Agreement
Severability
Third-Party Rights
Export Control
Source Code Escrow
Training and Implementation
Updates and Upgrades
Performance Standards
Usage Restrictions
Documentation
Disaster Recovery
Compliance with Laws
Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare

Manufacturing

Retail

Professional Services

Education

Telecommunications

E-commerce

Government and Public Sector

Banking and Finance

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Finance

Operations

Risk Management

Vendor Management

Software Development

Contract Administration

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software Licensing Manager

Compliance Officer

Information Security Manager

Contract Administrator

Chief Information Officer

Business Development Manager

IT Project Manager

Chief Legal Officer

Software Asset Manager

Vendor Management Specialist

Industries
Intellectual Property Code of the Philippines (Republic Act No. 8293): Primary legislation governing copyright protection of software, licensing rights, and intellectual property protection in the Philippines
Electronic Commerce Act of 2000 (Republic Act No. 8792): Regulates electronic transactions, including software licensing agreements executed electronically, and provides legal recognition of electronic documents
Consumer Act of the Philippines (Republic Act No. 7394): Protects consumer rights and interests, including warranties and guarantees that may apply to software products
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the collection, processing, and storage of personal information, which is relevant if the software processes user data
Cybercrime Prevention Act of 2012 (Republic Act No. 10175): Addresses cybersecurity concerns and illegal access to computer systems, relevant for software security provisions
Civil Code of the Philippines (Republic Act No. 386): Provides general contract law principles applicable to license agreements, including formation, validity, and enforcement
Price Act (Republic Act No. 7581): May affect pricing provisions and price control mechanisms in commercial software licensing
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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