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Application Software License Agreement

Application Software License Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Application Software License Agreement

"I need an Application Software License Agreement for licensing our healthcare management software to a hospital in Riyadh, with strict data protection clauses and compliance with Saudi healthcare regulations, planned for implementation in March 2025."

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The Application Software License Agreement is a crucial document used when a software provider grants a customer the right to use their software application(s) within Saudi Arabia. This agreement is essential for any software deployment in the Kingdom, whether for on-premises or cloud-based solutions. It must comply with Saudi Arabian regulations, including Shariah law principles, data protection requirements, and CITC regulations. The agreement covers critical aspects such as usage rights, territorial restrictions, payment terms, support services, and data sovereignty requirements. It's particularly important for protecting both parties' interests while ensuring compliance with local laws regarding electronic transactions, intellectual property rights, and data protection. The document should be used whenever software is being licensed to Saudi Arabian entities or for use within Saudi Arabia, providing a clear framework for the software licensing relationship while addressing specific local legal and regulatory requirements.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including full legal names, registration numbers, and addresses

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

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical terms specific to the software

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

5. License Fees and Payment Terms: Details of licensing fees, payment schedule, and payment methods compliant with Saudi Arabian banking regulations

6. Intellectual Property Rights: Declaration and protection of IP rights, ownership of the software, and any third-party components

7. Licensee Obligations: Responsibilities and obligations of the licensee regarding software use, security, and access controls

8. Technical Support and Maintenance: Terms for support services, maintenance, updates, and response times

9. Warranties and Representations: Warranties regarding software performance, compliance with Saudi law, and Shariah principles

10. Data Protection and Privacy: Compliance with Saudi Arabian data protection laws and data localization requirements

11. Term and Termination: Duration of the license, renewal terms, and grounds for termination

12. Confidentiality: Protection of confidential information and trade secrets

13. Limitation of Liability: Limitations on liability and remedies in compliance with Saudi law

14. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and jurisdiction for disputes

15. General Provisions: Standard clauses including force majeure, notices, and amendment procedures

Optional Sections

1. Source Code Escrow: Terms for source code escrow arrangements, used when licensee requires additional security

2. Professional Services: Terms for additional implementation or customization services, if required

3. Export Controls: Compliance with export control regulations, needed for international use

4. Disaster Recovery: Requirements for disaster recovery and business continuity, important for critical applications

5. Training Services: Terms for user training and knowledge transfer, if included in the agreement

6. Security Requirements: Specific security standards and certifications, necessary for sensitive applications

7. Service Level Agreement: Detailed performance metrics and service levels, used for business-critical applications

8. Third-Party Integration: Terms regarding integration with other software systems, if applicable

Suggested Schedules

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 terms, and calculation methods

3. Schedule 3 - Service Level Agreement: Detailed service levels, performance metrics, and remedies

4. Schedule 4 - Support and Maintenance Services: Detailed description of support services, maintenance procedures, and response times

5. Schedule 5 - Security Requirements: Specific security standards, protocols, and compliance requirements

6. Appendix A - Authorized Users: List of authorized users or user categories and their access rights

7. Appendix B - Technical Requirements: Minimum system requirements and technical specifications for software operation

8. Appendix C - Data Processing Terms: Detailed terms for data processing, storage, and protection in compliance with Saudi law

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
Affiliate
Agreement
Authorized Users
Business Day
Confidential Information
Documentation
Effective Date
Fees
Force Majeure
Intellectual Property Rights
License
License Term
Licensed Software
Maintenance Services
Modifications
Normal Business Hours
Personal Data
Security Requirements
Service Level Agreement
Software Updates
Source Code
Specifications
Support Services
System Requirements
Technical Support
Term
Territory
Third-Party Software
User Access Levels
Warranties
Work Product
Acceptance Criteria
Application Programming Interface (API)
Backup Copy
Cloud Services
Compliance Requirements
Data Protection Laws
Designated Equipment
Disaster Recovery Plan
Error
Implementation Services
License Key
Maintenance Window
Performance Standards
Processing
Response Time
SAR (Saudi Riyal)
Service Credits
Software Version
Support Level
User Documentation
Virus
Zakat
Clauses
Grant of License
License Restrictions
Intellectual Property Rights
Payment Terms
Delivery and Installation
Technical Support
Maintenance Services
Service Levels
Data Protection
Confidentiality
Warranties
Limitation of Liability
Indemnification
Term and Termination
Force Majeure
Assignment
Dispute Resolution
Governing Law
Compliance with Laws
Audit Rights
Security Requirements
Documentation
Training
Acceptance Testing
Performance Standards
Change Control
Disaster Recovery
Export Control
Source Code Escrow
Third-Party Software
Updates and Upgrades
User Access
Business Continuity
Notice Requirements
Entire Agreement
Severability
Shariah Compliance
Data Localization
Electronic Signatures
Anti-Corruption
Insurance
Relevant Industries

Information Technology

Financial Services

Healthcare

Government

Education

Retail

Manufacturing

Telecommunications

Oil & Gas

Professional Services

Construction

Logistics

Insurance

Real Estate

Media & Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Risk Management

Vendor Management

Enterprise Architecture

Software Development

IT Operations

Digital Transformation

Contract Administration

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Software Development Manager

Information Security Officer

Technology Solutions Architect

Compliance Officer

Contract Manager

IT Project Manager

Enterprise Architect

Chief Technology Officer

Digital Transformation Manager

IT Operations Manager

Risk Manager

Vendor Management Officer

Industries
Electronic Transactions Law (Royal Decree No. M/18): Governs electronic transactions and signatures, providing legal recognition of electronic contracts and digital signatures, crucial for software licensing agreements.
Copyright Law (Royal Decree No. M/41): Protects intellectual property rights including software and computer programs, defining terms of use and distribution rights.
Personal Data Protection Law (PDPL): Regulates the collection, processing, and storage of personal data, relevant if the software processes user data.
Cloud Computing Regulatory Framework (CCRF): Governs cloud computing services and data storage, applicable if the software includes cloud-based components.
Anti-Commercial Fraud Law: Ensures authenticity and prevents fraud in commercial transactions, including software licensing.
Commercial Courts Law: Governs commercial disputes and enforcement of contracts, including software license agreements.
Competition Law: Ensures fair competition and prevents monopolistic practices in software licensing.
Consumer Protection Law: Protects consumer rights and interests, applicable when licensing software to individual users.
CITC Regulations: Communications and Information Technology Commission regulations affecting software and IT services.
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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