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What Is a SaaS Agreement? A SaaS agreement, or a software as a service agreement, lays out terms and conditions of a software delivery model. In this type of model, software and data will be centrally hosted and users will access the software and data over the internet.
A software license is a document that provides legally binding guidelines for the use and distribution of software. Software licenses typically provide end users with the right to one or more copies of the software without violating copyrights.
However, unlike a licensing agreement, SaaS companies don't provide a physical product or installation. Instead of providing a physical CD or download of a product, a SaaS purchase agreement licenses the right for another business to use the software through the cloud.
Non-exclusivity clause, non-transferability provision, rights clause, modification clause, breach of contract clause, limitation of liability clause, and governing law clause are crucial clauses that every software license should include.
Multi-user ? This license allows you to a program onto multiple computers used by multiple users. Typically this may be a set number of users. For example, a five user multi-user license allows up to five people to use the program.
Software licensing terms and conditions usually include fair use of the software, the limitations of liability, warranties and disclaimers. They also specify protections if the software or its use infringes on the intellectual property rights of others.
Permissive This type of license is one of the most common and popular among open-source software licenses. Under a permissive license ? also referred to as ?Apache? or ?BSD style? ? there are few restrictions or requirements for the distribution or modifications of the software.
With a SaaS license, users don't own the software but instead pay for ongoing access and usage. It is a subscription-based model where the software is hosted and maintained by the SaaS provider, and users only pay for the period they use the software.
Most IT contract drafters know the difference between a software license agreement and a technology services contract. In a license, the customer gets rights to copy and use software, while in a services contract, the customer gets a service, like tech support or IT consulting.
Does SaaS have a License? SaaS does have a license. With perpetual license software, customers must purchase the license, while with SaaS users must sign the license to illustrate their compliance.