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What is a Software Value Added Reseller (VAR) Agreement ?
A “Software Value Added Reseller (VAR) Agreement” is a legal document that outlines the terms and conditions between a software developer or manufacturer (the supplier) and a value-added reseller (VAR) who enhances, modifies, or customizes the software before reselling it to customers. It governs the relationship and responsibilities of both parties involved in the software value-added reselling arrangement.
What is the purpose of a Software Value Added Reseller (VAR) Agreement ?
The purpose of a Software VAR Agreement is to establish the rights, obligations, and expectations of the supplier and the VAR in the distribution, customization, and sale of the software products. It defines the terms of the VAR’s authorization, pricing, payment terms, intellectual property rights, support, and any other relevant provisions.
When should you use a Software Value Added Reseller (VAR) Agreement ?
This document is typically used when a software supplier wishes to engage a VAR to enhance or customize their software products and resell them to customers. It is commonly utilized in the software industry where manufacturers or developers want to leverage the expertise of VARs to add value to their software and expand their market reach.
What are the components of a Software Value Added Reseller (VAR) Agreement ?
The components of a Software VAR Agreement may include:
- Parties: The names and contact information of the software supplier (the developer or manufacturer) and the VAR.
- Authorization: A clause stating that the supplier authorizes the VAR to enhance, modify, and resell their software products.
- Product Description: Detailed descriptions of the software products being resold, including version numbers, features, and any specific terms or limitations.
- Value-Added Services: A clear statement outlining the value-added services the VAR will provide, such as customization, integration, training, technical support, or maintenance.
- Pricing and Payment: The pricing structure, payment terms, and any applicable discounts or commissions that the VAR will receive for value-added services and software sales.
- Intellectual Property: Clauses addressing the use of trademarks, copyrights, or other intellectual property associated with the software products and any modifications or customizations made by the VAR.
- Marketing and Support: The VAR’s obligations regarding marketing efforts, customer support, training, and any other services related to the value-added software products.
- License Restrictions: Any restrictions on the VAR’s ability to sublicense or redistribute the software products, including limitations on the scope of value-added services.
- Warranty and Liability: Provisions outlining the warranty terms, limitations of liability, and indemnification obligations related to the software products and value-added services.
- Term and Termination: The duration of the agreement and conditions for termination or renewal, including notice periods or grounds for termination.
- Dispute Resolution: Procedures for resolving disputes, including negotiation, mediation, or arbitration mechanisms.
- Governing Law and Jurisdiction: The governing law and jurisdiction that will apply in case of disputes.
Who can be members of a Software Value Added Reseller (VAR) Agreement ?
The members of the Software VAR Agreement are the software supplier (developer or manufacturer) and the VAR. They are the primary parties involved in establishing the VAR relationship and assuming the respective rights and obligations outlined in the agreement. Legal advisors or representatives may also be involved in reviewing and finalizing the agreement to ensure its compliance with applicable laws and regulations.
The Zegal template library
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