On Premise Software License Agreement for the United States

On Premise Software License Agreement Template for United States

An On Premise Software License Agreement is a legal contract governed by U.S. law that establishes the terms and conditions under which a software vendor licenses their software product to a customer for installation and use on the customer's own infrastructure. This agreement covers key aspects including license scope, usage rights, restrictions, intellectual property protection, warranties, and liability limitations. It differs from SaaS agreements as it involves software installed locally rather than accessed via the cloud.

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What is a On Premise Software License Agreement?

The On Premise Software License Agreement is essential when a software vendor wishes to license their software product for installation and use on a customer's local infrastructure while maintaining intellectual property rights. This agreement, governed by U.S. law, establishes crucial terms including usage rights, restrictions, warranties, and support obligations. It's particularly important for organizations requiring local software deployment for security, compliance, or operational reasons, and differs from cloud-based software agreements in addressing local installation and maintenance requirements.

What sections should be included in a On Premise Software License Agreement?

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

2. Background: Explains the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. License Grant: Specifies the scope, nature, and limitations of the software license

5. License Restrictions: Details prohibited uses and activities related to the software

6. Intellectual Property Rights: Establishes ownership of IP and related rights

7. Payment Terms: Details license fees, payment schedule, and related terms

8. Term and Termination: Specifies duration and conditions for termination

9. Warranties and Disclaimers: States warranties provided and limitations

10. Limitation of Liability: Sets bounds on parties' liability

What sections are optional to include in a On Premise Software License Agreement?

1. Professional Services: Details any implementation or support services when additional services are provided beyond the software license

2. Data Protection: Addresses data privacy and security requirements when software processes personal or sensitive data

3. Export Controls: Addresses export compliance requirements when software may be used internationally

4. Source Code Escrow: Terms for source code protection and release when source code access might be needed in specific circumstances

What schedules should be included in a On Premise Software License Agreement?

1. Software Description: Detailed description of licensed software and components

2. Technical Requirements: Hardware and system requirements for software operation

3. Service Level Agreement: Performance standards and support levels if applicable

4. Fee Schedule: Detailed breakdown of all applicable fees and charges

5. Acceptable Use Policy: Detailed terms of acceptable use of the software

6. Data Processing Agreement: Details of data processing terms 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

United States

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Clauses
Industries

Copyright Act of 1976: Primary federal legislation governing copyright protection for software and related documentation

Digital Millennium Copyright Act (DMCA): Federal law addressing copyright issues in digital media, including anti-circumvention provisions and ISP safe harbors

Patent Act: Federal legislation protecting novel, non-obvious software innovations and implementations

Trade Secrets Act: Federal and state laws protecting confidential business information and proprietary software components

Trademark Act (Lanham Act): Federal law protecting software branding, logos, and associated commercial identifiers

Uniform Commercial Code (UCC): State-adopted uniform law governing commercial transactions, particularly Article 2 relating to sales of goods

Uniform Electronic Transactions Act (UETA): State law framework for electronic signatures and records in commercial transactions

State Privacy Laws: Various state-specific data privacy regulations (e.g., CCPA in California, SHIELD Act in New York) governing data protection requirements

HIPAA: Federal healthcare privacy law governing protection of medical information in software applications

GLBA: Federal financial privacy law governing protection of financial information in software applications

FERPA: Federal education privacy law governing protection of student information in software applications

Federal Trade Commission Act: Federal law prohibiting unfair or deceptive trade practices in software licensing and marketing

Magnuson-Moss Warranty Act: Federal law governing software warranties and consumer product warranties

Export Administration Regulations (EAR): Federal regulations controlling the export of commercial software and encryption technology

International Traffic in Arms Regulations (ITAR): Federal regulations controlling export of defense-related software and technical data

State Data Breach Notification Laws: State-specific requirements for notification of security breaches involving personal information

Americans with Disabilities Act (ADA): Federal law requiring accessibility considerations in software design and implementation

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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