Software License Subscription Agreement
What this document covers
The Software License Subscription Agreement is a legal document that outlines the terms under which a licensee may use software provided by the licensor. The agreement ensures that the software is used solely for the licensee's business purposes and prohibits unauthorized sharing or distribution. This form is crucial for legal protection and clarifies both parties' rights concerning the software's use and maintenance, distinguishing it from general software purchase agreements by emphasizing subscription-based access and usage restrictions.
Form components explained
- Grant of License: Details the rights granted to the licensee regarding the software use.
- Scope of License: Specifies the limitations on the software's use, including restrictions on third-party access.
- Payment Terms: Outlines the fees associated with the license, including initiation fees and subscription costs.
- Duration and Termination: Describes how long the license is valid and the conditions for termination.
- License Activation Date: Defines when the license becomes effective.
- Warranties and Disclaimers: Clarifies the responsibilities and liabilities of both parties regarding software functionality and use.
When this form is needed
This form is needed when a business intends to use software under a subscription model rather than through a one-time purchase. It is particularly useful in scenarios where the software is customized for specific business needs, or when the software requires ongoing support and updates. Furthermore, it can be applied when entering into a partnership or collaboration involving the software where clear usage guidelines and responsibilities are necessary.
Who can use this document
- Businesses and organizations that need software for operational purposes.
- Individuals or companies seeking licensing agreements for proprietary software.
- Software developers and providers who wish to establish legal terms for software usage with clients.
Instructions for completing this form
- Identify and enter the names and addresses of both the licensor and the licensee.
- Specify the software and its intended usage in the designated sections.
- Complete the payment terms by filling out the prices and any applicable fees.
- Sign and date the agreement to make it effective.
- Ensure both parties retain copies of the signed agreement for their records.
Is notarization required?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Avoid these common issues
- Failing to specify the exact software being licensed.
- Ignoring the detailed payment terms, which can lead to misunderstandings.
- Not including necessary signatures and dates on the agreement.
- Neglecting to review the scope of the license and its implications.
Why complete this form online
- Quick access to a professionally drafted template tailored to your needs.
- Easy customization of fields to align with specific software and business requirements.
- Secure storage and retrieval of your legal documentation when downloaded.
- Reliable updates to ensure the form reflects current legal standards and practices.
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FAQ
A software subscription agreement (also referred to as a software license agreement) is a contract that exists between the manufacturer of the software (the licensor) and the individual or company that purchases it (the licensee).
THIS AGREEMENT IS A LEGALLY BINDING CONTRACT BETWEEN YOU AND UPTRENDS AND SETS FORTH THE TERMS AND CONDITIONS THAT GOVERN YOUR USE OF THE SOFTWARE SERVICES.
A software license is a contract between the entity that created and supplied an application, underlying source code, or related product and its end user.
Private companies tend to use subscription agreements if they want to raise capital from investors that are private. This can be done by selling either shares or the company's ownership without needing to register with the SEC.Having a subscription agreement will help solidify a promise into a fixed transaction.
A subscription agreement is a formal agreement between a company and an investor to buy shares of a company at an agreed-upon price. The subscription agreement contains all the required details.
A software license agreement gives a licensee a non-exclusive, non-transferable right to use software. A software license agreement defines how that software can be used and what happens in the event of breach.
User agreements like EULAs are legally binding contracts between the software author and the end-user. End User License Agreements are enforceable as long as it is clear that it is a contract and both parties can understand the terms.
In a subscription license, all of the benefits are provided up-front in one yearly or monthly fee no hidden costs. Compared to a perpetual license, you will pay an up-front cost, but that often doesn't include system upgrades, maintenance, customer support, or even an IT structure.
Setting up Your Licensing Agreement. Granting the License. Limiting Your Liability. Adding Boilerplate Clauses. Finalizing the Licensing Agreement.
