Software Licence Agreement for the United States

Software Licence Agreement Template for United States

A Software License Agreement is a legal contract governed by U.S. law that establishes the terms and conditions under which software can be used by a licensee. It defines the rights granted, usage restrictions, intellectual property protections, and obligations of both parties. The agreement typically includes provisions for payment terms, warranties, liability limitations, and compliance with relevant U.S. federal and state regulations, including copyright law and data protection requirements.

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What is a Software Licence Agreement?

The Software License Agreement is essential when granting rights to use proprietary software while protecting intellectual property rights. This contract type is commonly used in the United States technology sector and must comply with federal and state laws including the Copyright Act, DMCA, and state-specific regulations. It covers crucial aspects such as usage scope, payment terms, warranties, support obligations, and termination conditions. The agreement is particularly important for software companies seeking to monetize their products while maintaining control over their distribution and use.

What sections should be included in a Software Licence Agreement?

1. Parties: Identifies and defines the licensor and licensee, including full legal names and addresses

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

3. Definitions: Defines key terms used throughout the agreement

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

5. License Restrictions: Details what the licensee cannot do with the software

6. Intellectual Property Rights: Confirms ownership and protection of IP rights

7. Payment Terms: Details of license fees, payment schedule, and payment methods

8. Term and Termination: Duration of agreement and circumstances for termination

9. Warranties and Disclaimers: Warranties provided and limitations thereof

10. Limitation of Liability: Limits on liability and exclusions

What sections are optional to include in a Software Licence Agreement?

1. Support and Maintenance: Terms for technical support and updates - include when ongoing support is part of the agreement

2. Service Level Agreement: Performance metrics and service standards - include for cloud-based or SaaS solutions

3. Data Protection: Obligations regarding personal data processing - include when personal data is processed

4. Source Code Escrow: Terms for source code protection and release - include for business-critical software

5. Export Control: Compliance with export regulations - include for international licensing

What schedules should be included in a Software Licence Agreement?

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

2. Schedule 2 - License Fees: Detailed pricing structure and payment terms

3. Schedule 3 - Technical Requirements: Hardware and software requirements for operation

4. Schedule 4 - Service Level Agreement Details: Detailed performance metrics and response times

5. Schedule 5 - Support Services Description: Detailed description of support services and procedures

6. Schedule 6 - Acceptable Use Policy: Rules and guidelines for software usage

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

Agreement Contract

Cost

Free to use
Industries

Copyright Laws: Primary legislation includes Copyright Act of 1976, Digital Millennium Copyright Act (DMCA), and Computer Software Copyright Act, which protect original works and software code

Intellectual Property Protection: Patent Act, Defend Trade Secrets Act, and Lanham Act (Trademark Law) protecting various aspects of intellectual property in software

Contract Law Framework: Uniform Commercial Code (UCC), state-specific contract laws, and E-SIGN Act governing formation and enforcement of software license agreements

Privacy and Data Protection: CCPA, state privacy laws, Computer Fraud and Abuse Act, and COPPA regulations concerning data protection and privacy requirements

Consumer Protection: Federal Trade Commission Act, state consumer protection laws, and Magnuson-Moss Warranty Act ensuring consumer rights and warranty provisions

Export Control Regulations: Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) governing international software distribution

Antitrust Legislation: Sherman Antitrust Act and Clayton Act preventing anti-competitive practices in software licensing

Industry-Specific Compliance: Sector-specific regulations like HIPAA for healthcare and Gramm-Leach-Bliley Act for financial services

License Scope: Definition of license grant, permitted uses, and territorial restrictions

Usage Rights: Specific terms regarding installation, copying, modification, and distribution rights

IP Protection Clauses: Provisions protecting intellectual property rights, ownership, and infringement remedies

Warranty Terms: Warranties, disclaimers, and limitations on software performance and functionality

Liability Limitations: Clauses limiting liability and defining indemnification obligations

Agreement Duration: Terms regarding license duration, renewal, and termination conditions

Payment Structure: License fees, payment terms, and conditions for ongoing charges

Support Services: Terms for technical support, maintenance, and updates

Confidentiality Provisions: Requirements for protecting confidential information and trade secrets

Data Protection: Obligations regarding data handling, privacy protection, and security measures

Dispute Resolution: Procedures for handling disputes, choice of forum, and arbitration provisions

Jurisdiction: Specification of governing law and jurisdictional requirements under US legal framework

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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