Checklist Software License Agreement Provisions

Company Letterhead

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{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Parties and Definitions

1.1. **Licensor:** Full legal name and address of the software owner/provider (e.g., {{licensor_company_name}}, {{licensor_address}}).

1.2. **Licensee:** Full legal name and address of the entity acquiring the license (e.g., {{licensee_company_name}}, {{licensee_address}}).

1.3. **Software:** Precise identification of the software, including version numbers, modules, and any associated documentation (e.g., {{software_name}}, Version {{software_version}}).

1.4. **Effective Date:** The date upon which the agreement becomes binding (e.g., {{effective_date}}).

2. Grant of License

2.1. **Scope of License:** Specify whether the license is perpetual or term-based (e.g., perpetual, {{term_duration}} years), worldwide or geographically restricted (e.g., worldwide, {{geographic_restriction}}), exclusive or non-exclusive.

2.2. **Permitted Use:** Clearly define how the software may be used, including the number of users, installations, and machines (e.g., up to {{number_of_users}} users, {{number_of_installations}} installations, on {{number_of_machines}} machines).

2.3. **Restrictions:** Outline prohibited uses, such as reverse engineering, sublicensing, or distributing the software to third parties.

2.4. **Source Code Access:** Indicate whether source code access is granted, and if so, under what conditions (e.g., escrow agreement).

3. Fees and Payment Terms

3.1. **License Fees:** State the total license fee, payment schedule, and currency (e.g., {{currency}} {{license_fee}}, payable on {{payment_schedule}}).

3.2. **Maintenance and Support Fees:** Detail any recurring fees for maintenance, updates, and technical support (e.g., {{currency}} {{maintenance_fee}} per {{maintenance_frequency}}).

3.3. **Payment Methods:** Specify acceptable payment methods (e.g., bank transfer, credit card).

3.4. **Late Payment Penalties:** Include clauses for interest on overdue payments (e.g., {{late_payment_interest_rate}}% per annum).

4. Intellectual Property Rights

4.1. **Ownership:** Affirm that all intellectual property rights in the software remain with the Licensor.

4.2. **Infringement Indemnification:** Outline provisions for indemnification in case of third-party intellectual property infringement claims.

5. Warranties and Disclaimers

5.1. **Licensor Warranties:** Specify warranties regarding software functionality, performance, and compliance with documentation (e.g., software will perform substantially in accordance with documentation for {{warranty_period}} days).

5.2. **Disclaimer of Warranties:** Include standard disclaimers of implied warranties (e.g., fitness for a particular purpose, merchantability).

5.3. **Virus and Malicious Code:** Warranty regarding the absence of viruses and malicious code at the time of delivery.

6. Limitation of Liability

6.1. **Cap on Liability:** Set a maximum limit on the Licensor's liability for damages (e.g., not to exceed the total fees paid by Licensee in the {{liability_period}} months preceding the event giving rise to the claim).

6.2. **Exclusion of Damages:** Exclude liability for indirect, incidental, consequential, or punitive damages.

7. Term and Termination

7.1. **Term:** State the duration of the agreement or perpetual nature.

7.2. **Termination for Breach:** Conditions under which either party may terminate the agreement due to a material breach (e.g., {{notice_period_days}} days written notice to cure).

7.3. **Effects of Termination:** Provisions regarding return or destruction of software, confidentiality obligations surviving termination, and accrued rights.

8. Confidentiality

8.1. **Confidential Information:** Define what constitutes confidential information.

8.2. **Non-Disclosure Obligations:** Both parties' obligations to protect and not disclose confidential information.

8.3. **Exceptions:** Circumstances under which disclosure is permitted (e.g., court order).

9. Governing Law and Dispute Resolution

9.1. **Governing Law:** Specify the jurisdiction whose laws will govern the agreement (e.g., the laws of {{country}}).

9.2. **Dispute Resolution:** Outline the process for resolving disputes (e.g., arbitration in {{arbitration_city}}, mediation, or litigation in competent courts).

10. General Provisions

10.1. **Entire Agreement:** Clause stating that the agreement constitutes the entire understanding between the parties.

10.2. **Amendments:** Requirements for any amendments to be in writing and signed by both parties.

10.3. **Assignment:** Restrictions on assigning the agreement.

10.4. **Force Majeure:** Provisions addressing events beyond the reasonable control of the parties.

Signature Block

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

LICENSOR:

___________________________________

By: {{licensor_authorized_signatory_name}}

Title: {{licensor_authorized_signatory_title}}

Date: {{licensor_signature_date}}

LICENSEE:

___________________________________

By: {{licensee_authorized_signatory_name}}

Title: {{licensee_authorized_signatory_title}}

Date: {{licensee_signature_date}}