On Premise Software License Agreement for South Africa

On Premise Software License Agreement Template for South Africa

A comprehensive legal agreement governed by South African law that establishes the terms and conditions for licensing and using software installed on the customer's local infrastructure. The agreement covers essential aspects including license scope, usage rights, intellectual property protection, warranties, support services, and compliance with South African regulations including POPIA, ECT Act, and Consumer Protection Act. It details the responsibilities of both the software provider and the customer, including installation, maintenance, payment terms, and dispute resolution mechanisms within the South African legal framework.

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What is a On Premise Software License Agreement?

The On Premise Software License Agreement is a critical legal document used when a software provider licenses their software for installation and use on a customer's local infrastructure in South Africa. This agreement type is essential when organizations prefer to maintain software within their own IT environment rather than using cloud-based solutions. The document must comply with South African legislation, including the Electronic Communications and Transactions Act, Protection of Personal Information Act (POPIA), and Consumer Protection Act. It typically includes detailed terms covering license scope, implementation, support, maintenance, warranties, and intellectual property rights. This agreement type is particularly relevant for organizations requiring direct control over their software environment, having specific security requirements, or needing to comply with data residency regulations.

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

1. Parties: Identification of the licensor and licensee, including their registered addresses and company details

2. Background: Context of the agreement, including 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, including usage rights, restrictions, and territory limitations

5. License Fees and Payment Terms: Pricing, payment schedule, late payment consequences, and taxation requirements

6. Delivery and Installation: Terms regarding software delivery, installation procedures, and acceptance testing

7. Use of Software: Permitted uses, user limitations, and restrictions on modification or reverse engineering

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

9. Warranties and Representations: Software performance warranties, compliance with laws, and standard representations

10. Support and Maintenance: Basic support obligations and maintenance terms

11. Confidentiality: Protection of confidential information and trade secrets

12. Limitation of Liability: Liability caps and exclusions compliant with South African law

13. Term and Termination: Duration, renewal terms, and termination rights and consequences

14. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

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

1. Data Protection: Detailed POPIA compliance terms, required if the software processes personal information

2. Third-Party Software: Terms relating to third-party components, needed if the software incorporates third-party elements

3. Export Controls: Export restriction clauses, necessary for software with international distribution

4. Source Code Escrow: Terms for source code escrow arrangements, important for business-critical applications

5. Professional Services: Additional terms for implementation services, if provided alongside the license

6. Service Levels: Detailed performance metrics and remedies, needed for business-critical applications

7. Disaster Recovery: Requirements for backup and recovery procedures, important for high-risk implementations

8. Insurance: Insurance requirements, relevant for high-value or high-risk implementations

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

1. Software Description: Detailed technical specifications and functionality of the licensed software

2. License Fees: Detailed pricing structure, payment schedules, and calculation methods

3. Technical Requirements: Hardware and software requirements for proper operation

4. Support Services: Detailed support and maintenance terms, including service levels and procedures

5. Authorized Users: List of authorized users or user categories and their access rights

6. Installation Requirements: Detailed installation procedures and acceptance testing criteria

7. Information Security Requirements: Security standards and requirements for software operation

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

South Africa

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Professional Services

Telecommunications

Mining

Education

Government

Insurance

Banking

Energy and Utilities

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Information Security

Operations

Software Development

Vendor Management

Finance

Enterprise Architecture

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software License Manager

Information Security Officer

IT Infrastructure Manager

Compliance Officer

Contract Manager

Chief Information Officer

Enterprise Architect

IT Operations Manager

Risk Manager

Technology Procurement Specialist

Software Asset Manager

Industries
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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