What is a Software License Agreement?
A Software License Agreement is the software owner’s express permission for another party to use the software within an agreed scope.
How to create a Software License Agreement
Easy to Use Legal Templates
Quickly and easily create any legal agreement for you or your team.
Straightforward pricing plans and bespoke packages built to simplify all your legal demands.
Vast Document Library
Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.
What is a Software License Agreement?
A Software License Agreement is the software owner’s express permission for another party to use the software within an agreed scope. A Software License Agreement is a license and not an assignment; therefore, the copyright ownership in the software is not being transferred. It sets out how the licensee can use the software and provides information about existing licenses that the software owner may have issued to other parties.
How does a Software License Agreement work?
A Software License Agreement works by providing a license key to the valid purchaser, also called a licensee. When a user buys the product, they will be provided with a license key which also has the details about the number of copies he/she can use from that license. Most of the software has either yearly subscriptions or one-time fees. In a yearly subscription, a user has to pay a fixed amount yearly in order to run the software however lifetime subscription is one-time activation, there is no need to buy or renew the software every year.
What is the difference between EULA and Software License Agreement?
EULA stands for End User License Agreement, basically an agreement between a company that provides ready to use applications where many users could be using the software on a daily basis whereas a Software License Agreement is used for business to business for a limited number of users.
Why is a Software License Agreement important?
Having an agreement for licensing software defines the fair use of the software. It gives a non-transferable right to the end-user to use the software. 3 main importance of this agreement are:
1.Protection from Software Abuse: After developing any software one of the main responsibilities of a software developer is to create an agreement that will protect the rights to use that software and also protects from abuses. If the software is not protected, then others can replicate the same design or add some modifications and can market or sell under their own brand name.
2.Help License the Software: a well-drafted Software License Agreement helps a developer or an agency to license the software and sell separate copies of that license. They can do so with a recurring yearly subscription or with a one-time purchase. Creating a license and selling software are two different things. Creating a license is useful when you want to sell many licenses of single software but selling software means you’re selling the entire rights associated with that software.
3.Terminate License in Case of Misuse: after selling a software license to the customer, if a developer found any kind of misuse with the current subscription they can void or terminate the subscription with the use of fair use policy under the Software License Agreement.
What are the different types of Software Licenses?
Some common software license models are:
Public domain: This is the most flexible and popular type of software license. Here the software is out in a public domain, can be used and modifies without any restrictions.
Copyleft: These licenses are also called reciprocal or restrictive licenses. It permits the modification of the licensed code as well as the distribution of new works based on it as long as they are done under the same software license.
Proprietary: This is the most restrictive software license. Here, all rights are reserved and work may not generally be modified or redistributed.
What do software licensing agreements normally forbid?
Copyright is given under strict and specific terms. While free software license agreements are more flexible and usually give the purchaser the rights to redistribute as well as modify the software. A proprietary software licensing agreement is quite rigid and usually only allows for the use of the software but forbids the modification and redistribution of the software.
A Software License Agreement is an agreement between an agency and its customers for the use of the software. With proper license or rights, an agency can re-distribute the software to their customer by safeguarding software fair use policy.
You Might Also Like
Along with this document, make sure you see these other templates in our library:
The Zegal Template Library
Zegal's template library is a list of essential and premium business templates for your everyday legal needs.
Save money and time without sacrificing quality or missing vital legal requirements. Whether you're a startup or a larger enterprise, Zegal lets anyone create a legal agreement.
Let us take care of the legals so you can focus on running your business.
If you need more help, our "Talk to a Lawyer" feature gives you access to a qualified lawyer to get all the expert advice you need.
Try it for free today!
Ready to get started?
Create a free account now and explore all of the Zegal features.
No credit card required
If you're creating a Software License Agreement, you may also be interested in the following documents:
Choose from 1000+ legal templates and draft contracts with ease and confidence.
Contract and document management made easy.
Pay As You Go
Nice things people say about Zegal.
"Using Zegal allows us to take a lean and efficient approach that cuts costs while maximising results."
"Zegal is easy to use and customer service is responsive and helpful! I strongly recommend it!!"
"Zegal makes onboarding a new client or employee fast and simple."
“Zegal really works well for all our legal documentation needs, and it is also user-friendly and mobile at the same time.”
Daniel W. Ho
Managing Director & Principal Consultant
“Zegal is like my teammate, helps me draft the right template, quickly gets my work done, and also saves me money on legal needs.”
CEO & Co-Founder
“With colleagues, partners, and clients across the globe, Zegal provides an easy-to-use tool that streamlines processes that saves costs and time.”
CEO of Turnkey
“Zegal has been such a great help in my business operations.”
Amanda A Atan
Managing Director at VIBES Mastery
“With Zegal, we work smarter rather than harder. Being a business professional, a proper document management system is always a must.”
“Zegal, a platform for compact package of legal templates, secured e-signing, reasonable cost and high level customer service.”
“Zegal is easy to use, affordable and the platform is simple to navigate which makes the process of putting together a document fast and fuss-free.”
Founder & Managing Director
“Love the new flow/design, very quick and easy to use now. I have done 2 or 3 customer contracts in a flash over the past 2 days.”
General Manager and Managing Editor
“Consistently positive experiences with Zegal’s technology, and customer services teams, who ensure that our issues or questions are responded to immediately.”
CEO of Turnkey