Checklist Software License Agreement Provisions

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Parties to the Agreement

Clearly identify the {{licensor_name}} (software provider) and the {{licensee_name}} (the business acquiring the license).

Include full legal names, registration numbers (where applicable), and physical addresses of both parties.

2. Definitions and Interpretation

Define key terms such as 'Software', 'License', 'Effective Date', 'License Fees', 'Intellectual Property Rights', 'Documentation', 'Users', 'Territory', 'Confidential Information', and 'Update/Upgrade'.

3. Grant of License

Specify the type of license granted (e.g., perpetual, term-based, non-exclusive, worldwide, limited).

Outline the scope of use (e.g., internal business operations, number of users, specific devices, permitted output).

State any restrictions on use (e.g., no sublicensing, no reverse engineering, no modification, no use for illegal purposes).

4. License Fees and Payment Terms

Detail the {{license_fee_amount}} and the payment schedule (e.g., upfront, monthly, annually).

Specify accepted payment methods and currency (e.g., {{currency}}).

Include provisions for late payment penalties and interest (e.g., {{late_payment_interest_rate}}% per annum).

5. Intellectual Property Rights

Affirm that all intellectual property rights in the Software remain with the {{licensor_name}}.

Include provisions preventing the {{licensee_name}} from challenging or infringing these rights.

6. Maintenance and Support

Specify the level of support included (e.g., email, phone, {{response_time_SLA}}).

Outline maintenance services, including bug fixes, patches, and updates/upgrades.

State the duration of the support period and any associated renewal fees.

7. Warranties and Disclaimers

List warranties provided by the {{licensor_name}} (e.g., software will perform substantially according to documentation, virus-free).

Include disclaimers of other warranties, express or implied, to the maximum extent permitted by law.

Specify the warranty period (e.g., {{warranty_period}} days from the Effective Date).

8. Limitation of Liability

Cap the {{licensor_name}}'s liability for damages (e.g., to the total license fees paid in the preceding {{number_of_months}} months or {{liability_cap_amount}}).

Exclude liability for indirect, incidental, special, or consequential damages.

9. Confidentiality

Define 'Confidential Information' to include all non-public information shared between parties.

Commit both parties to maintaining confidentiality and preventing unauthorized disclosure for a period of {{confidentiality_period}} years.

10. Termination

Outline conditions for termination by either party (e.g., material breach, insolvency, non-payment).

Specify rights and obligations upon termination (e.g., return/destruction of software, continued confidentiality obligations, payment of outstanding fees).

State the required notice period for termination (e.g., {{notice_period}} days).

11. Governing Law and Dispute Resolution

Specify the governing law (e.g., the laws of {{country}}).

Outline the process for dispute resolution (e.g., negotiation, mediation, arbitration in {{arbitration_city}}).

State that the prevailing party in any legal action shall be entitled to recover its legal costs.

12. General Provisions

Include clauses for 'Entire Agreement', 'Severability', 'Assignment', 'Waiver', and 'Notices'.

Signature Block

Acknowledged and Agreed by:

_____________________________

{{licensor_name}}

Name: {{licensor_signatory_name}}

Title: {{licensor_signatory_title}}

Date: {{date}}

_____________________________

{{licensee_name}}

Name: {{licensee_signatory_name}}

Title: {{licensee_signatory_title}}

Date: {{date}}