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Software Distribution Agreement

This Software Distribution Agreement template is for a software owner licensing their software to a distributor for resale. It defines the terms, conditions, and responsibilities of both parties to ensure legal and commercial clarity.

Updated 15d ago
softwaredistributionagreementlicensingresellerSMESouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{company_phone}}

Email: {{company_email}}

Website: {{company_website}}

SOFTWARE DISTRIBUTION AGREEMENT

This Software Distribution Agreement ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}} (the 'Effective Date') by and between:

{{licensor_company_name}}, a company duly incorporated under the laws of {{licensor_jurisdiction}}, with its principal place of business at {{licensor_address}} (the 'Licensor'); and

{{distributor_company_name}}, a company duly incorporated under the laws of {{distributor_jurisdiction}}, with its principal place of business at {{distributor_address}} (the 'Distributor').

The Licensor and the Distributor are hereinafter collectively referred to as 'the Parties' and individually as 'Party'.

RECITALS

WHEREAS, the Licensor is the sole owner of certain proprietary software known as '{{software_name}}' (the 'Software') and desires to license the distribution rights of the Software.

WHEREAS, the Distributor desires to obtain the right to distribute and market the Software in the Territory defined herein, subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. DEFINITIONS

1.1. 'Software' refers to the software product(s) developed and owned by the Licensor, identified as '{{software_name}}', including all its components, documentation, updates, and upgrades.

1.2. 'Territory' means {{territory_description}}.

1.3. 'End User' means any individual or entity that licenses the Software from the Distributor for their internal use and not for resale.

1.4. 'Distribution Rights' means the non-exclusive right to market, sublicense, and distribute the Software to End Users within the Territory.

2. GRANT OF DISTRIBUTION RIGHTS

2.1. The Licensor hereby grants to the Distributor, and the Distributor hereby accepts, a non-exclusive, non-transferable right to distribute the Software to End Users within the Territory during the term of this Agreement.

2.2. The Distributor shall not have the right to modify, reverse engineer, decompile, or disassemble the Software, or to create derivative works based on the Software.

2.3. The Distributor shall use its best efforts to promote, market, and distribute the Software in the Territory effectively.

3. LICENCE FEES AND PAYMENT TERMS

3.1. In consideration for the Distribution Rights, the Distributor shall pay the Licensor a license fee of {{license_fee_amount}} per unit of Software distributed, or as otherwise agreed in Exhibit A.

3.2. Payment shall be made by the Distributor to the Licensor within {{payment_days}} days of the end of each calendar month, based on the number of Software units distributed during that month.

3.3. All payments shall be made in {{currency}} to the bank account specified by the Licensor.

4. MARKETING AND SUPPORT

4.1. The Licensor shall provide the Distributor with necessary marketing materials, including product descriptions, images, and sales guides.

4.2. The Distributor shall be responsible for providing first-line technical support to End Users. The Licensor shall provide second-line support to the Distributor for complex issues as per the Service Level Agreement (SLA) attached as Exhibit B.

4.3. All marketing activities undertaken by the Distributor shall be consistent with the branding guidelines provided by the Licensor.

5. INTELLECTUAL PROPERTY RIGHTS

5.1. The Distributor acknowledges that all intellectual property rights in the Software, including copyright, patents, trademarks, and trade secrets, are and shall remain the sole property of the Licensor.

5.2. The Distributor shall not use the Licensor's trademarks or trade names without the prior written consent of the Licensor.

5.3. The Distributor shall immediately notify the Licensor of any infringement or suspected infringement of the Licensor's intellectual property rights that comes to its attention.

6. CONFIDENTIALITY

6.1. Both Parties agree to keep confidential all non-public information disclosed by one Party to the other, whether written or oral, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

6.2. This obligation of confidentiality shall survive the termination of this Agreement for a period of {{confidentiality_period}} years.

7. TERM AND TERMINATION

7.1. This Agreement shall commence on the Effective Date and shall continue for a period of {{initial_term_years}} years, unless terminated earlier in accordance with the provisions of this Agreement.

7.2. Either Party may terminate this Agreement by providing {{notice_days}} days' written notice to the other Party if the other Party breaches any material term of this Agreement and fails to cure such breach within the notice period.

7.3. Upon termination, the Distributor shall immediately cease all distribution and marketing activities regarding the Software and return all copies of the Software and related documentation to the Licensor.

8. GOVERNING LAW AND DISPUTE RESOLUTION

8.1. This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_country}}.

8.2. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the rules of {{arbitration_institution}}.

8.3. The seat of the arbitration shall be {{arbitration_city}}, {{arbitration_country}}.

9. GENERAL PROVISIONS

9.1. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

9.2. Amendments: No amendment or modification of this Agreement shall be valid unless in writing and signed by both Parties.

9.3. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.4. Assignment: Neither Party may assign its rights or obligations under this Agreement without the prior written consent of the other Party.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

FOR THE LICENSOR:

_____________________________

Name: {{licensor_signatory_name}}

Title: {{licensor_signatory_title}}

Date: {{licensor_signature_date}}

FOR THE DISTRIBUTOR:

_____________________________

Name: {{distributor_signatory_name}}

Title: {{distributor_signatory_title}}

Date: {{distributor_signature_date}}

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