Software Licence Agreement – annual fee

SOFTWARE LICENSE AGREEMENT – ANNUAL LICENCE FEE

Summary

If you are a software house, developing software that is licensed to clients in exchange for an annual license fee, this Agreement is for you. The Agreement strives to cater for the development of a project or test plan, installation, customisations and enhancements, set the parameters in respect of your Client’s rights in the Software Licenses, and assist you, the developer, in the event of any unforeseen problems, such as viruses, hacking or your Client’s abuse of the licenses.

More information

Why do I need a Software License Agreement?

A Software License Agreement strives to set out the terms of your relationship with your Client, including the terms of payment.

What type of business should use a Software License Agreement?

If your business provides a software development service to Clients, of if you have developed a software product that you offer to Clients, then you may consider using this agreement to contract with your Clients.

What does the Software License Agreement say?

The Agreement consists of:

• A definition section
• A grant of the license
• Fees and terms of payment
• Term and Termination
• Project Plan, Installation, and Customisations and Enhancements
• Intellectual Property Rights and Confidentiality
• Support and Warranties
• Exclusions and Limitation of Liability
• Notices and General provisions

What does the Software License Agreement look like?

The agreement contains four sections, and can be printed onto six A4 pages. The sections are:

• A details section: this requires you to fill in the Licensee’s details.
• The terms and conditions: the terms and conditions of the agreement are set out in a double-column format.
• Schedule 1 – License: this section details the number of licenses required and associated issues.
• Schedule 2 – Fees: this section is provided for you to set out the monthly fees payable, and any up-front costs.

What do you need to do to use the Agreement?

• Read the document to ensure that it suits your requirements. Make changes as required.
• Complete Schedule 1 with the License Details
• Complete Schedule 2 with the details of the fees
• Read the terms and conditions and ensure you are comfortable with the provisions
• Complete the Licensee Details page, and get your Client to sign, accepting the terms and conditions
• You sign in acceptance.

• Software Licence Agreement
• License Contract
• Software License Contract
• Software Licence Contract

Please note: this document contains technical jargon used in the IT industry. Should there be any concerns about the Consumer Protection Act, an expert’s advice should be sought.

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