Tennessee Software Distribution and Maintenance Agreement is a legal contract that outlines the terms and conditions for the distribution and maintenance of software products in the state of Tennessee. This agreement sets forth the rights and responsibilities of the software distributor and the party receiving the software, ensuring a clear understanding of the software's distribution, licensing, and ongoing maintenance. The Tennessee Software Distribution and Maintenance Agreement typically encompasses various key clauses that protect both parties involved. These clauses include: 1. Grant of Rights: This clause specifies the rights granted by the software distributor to the recipient, such as the right to use, copy, and distribute the software in accordance with the terms of the agreement. 2. License Restrictions: This section outlines the restrictions that the recipient must adhere to, ensuring that the software is used for authorized purposes only and not subjected to reverse engineering, modification, or redistribution without the distributor's explicit consent. 3. Distribution Terms: If the agreement involves the distribution of software, this clause defines the terms under which the distribution will take place, including the territories, channels, and the duration of the distribution rights. 4. Maintenance and Support: This section details the obligations and responsibilities of both parties regarding the ongoing maintenance and support of the software. It may include provisions for bug fixes, updates, technical support, and training if applicable. 5. Intellectual Property Rights: This clause safeguards the intellectual property rights of the software, specifying that all copyrights, trademarks, and other proprietary rights associated with the software remain with the distributor. 6. Payment Terms: Any financial considerations, such as licensing fees or royalties, are discussed in this section. It outlines the payment terms, frequency, and any additional costs incurred for maintenance and support services. 7. Termination: This clause includes provisions for termination of the agreement, specifying grounds for termination, notice period, and the consequences of termination, such as the discontinuation of support or the return of software copies. There may be different types of Tennessee Software Distribution and Maintenance Agreements, depending on various factors such as the nature of the software, the intended purpose, and the parties involved. Common variations include: 1. Standard Software Distribution and Maintenance Agreement: This is a general agreement applicable to the distribution and maintenance of commercially available software products. 2. Custom Software Distribution and Maintenance Agreement: This agreement is tailored to situations where the software is custom-developed or specifically designed for the recipient's unique needs, and may involve additional terms and conditions. 3. Enterprise Software Distribution and Maintenance Agreement: This type of agreement is specific to enterprise-level software distribution, often involving complex licensing structures, scalability, and additional support requirements. 4. Online Software Distribution and Maintenance Agreement: This agreement caters to the distribution and maintenance of software delivered through online platforms, including cloud-based applications or Software-as-a-Service (SaaS) models. It is important to consult with legal professionals and review the specific agreement in detail to ensure compliance with Tennessee laws and to address any unique circumstances before entering into any Software Distribution and Maintenance Agreement.
Tennessee Software Distribution and Maintenance Agreement
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How to fill out Tennessee Software Distribution And Maintenance Agreement?
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In Tennessee, services that are generally not subjected to either sales or use taxes include data processing, information services, and management consulting services. Businesses that offer management consulting or management services are required to pay a local gross receipts tax.
Software distribution agreements are necessary for distributors to know how and where to distribute a developer's software, and for developers to define their relationship with distributors. See what goes into a solid software distribution agreement. This article is for informational purposes.
A software maintenance agreement, or SMA, is a legal contract that obligates the software vendor to provide technical support and updates for an existing software product for their customers. It may also extend the expiration date of certain features, such as new releases or upgrades.
Tenn. Code Ann. § 67-6-202(a) (2007) imposes an additional state tax at the rate of 2.75 percent on the amount over $1,600, but less than or equal to $3,200, on the sale or use of any single article of tangible personal property (the ?state single article sales tax?). 1.
Section 67-6-102(25). Thus, consulting services and charges for services to create, design, develop, fabricate, program, alter or modify computer software are subject to the sales or use tax when the charges are made as part of the sale of software.
The sale of a warranty or service contract covering the repair or maintenance of tangible personal property is subject to sales tax at the time of the sale of the contract.
Tennessee law imposes the sales tax whether the price of the software maintenance contract is a mandatory or optional charge made by the software dealer when selling or licensing software. The total sales price of the computer software maintenance contract is subject to the 7% state tax rate plus the local tax rate.
Tennessee taxes a wide variety of SaaS and digital products, with limited exceptions. However, Tennessee does not tax most professional and other people services.