The Non-Exclusive Software License Agreement is essential for software companies and organizations operating in Canada who wish to license their software while retaining the right to license it to others. This document is typically used when a software provider wants to maintain ownership of their intellectual property while granting usage rights to multiple clients. The agreement must comply with Canadian federal and provincial legislation, including the Copyright Act, PIPEDA, and relevant provincial electronic commerce laws. It contains detailed provisions for software usage, fees, support services, and liability limitations, making it suitable for both business-to-business and business-to-consumer arrangements. The non-exclusive nature allows the licensor to maintain a broad customer base while protecting their intellectual property rights.
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1. Parties: Identification of the licensor and licensee with full legal names and addresses
2. Background: Context of the agreement, including brief description of the software and purpose of the license
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of License: Scope and nature of the non-exclusive license, including permitted uses and restrictions
5. License Fees: Payment terms, amounts, and schedule for license fees
6. Intellectual Property Rights: Assertion and protection of licensor's IP rights in the software
7. Licensee Obligations: Key responsibilities and restrictions on the licensee's use of the software
8. Support and Maintenance: Terms for technical support and software updates
9. Confidentiality: Protection of confidential information exchanged between parties
10. Warranties and Disclaimers: Software performance warranties and limitation of warranties
11. Limitation of Liability: Caps on liability and exclusions of certain types of damages
12. Term and Termination: Duration of agreement and circumstances for termination
13. General Provisions: Standard clauses including governing law, notices, and assignment
1. Data Protection and Privacy: Required when software processes personal data or when compliance with PIPEDA is necessary
2. Export Controls: Include when software may be subject to international trade restrictions
3. Source Code Escrow: Optional protection for licensee through source code escrow arrangements
4. Service Level Agreement: Include when specific performance metrics and availability guarantees are required
5. Audit Rights: Include when licensor needs right to verify compliance with license terms
6. Insurance Requirements: Include when specific insurance coverage is required from either party
7. Professional Services: Include when additional implementation or customization services are provided
1. Schedule A - Software Description: Detailed technical specifications and functionality of the licensed software
2. Schedule B - License Fees: Detailed breakdown of license fees, payment schedules, and pricing terms
3. Schedule C - Support Services: Detailed description of support and maintenance services, including SLAs if applicable
4. Schedule D - Authorized Users: Definition and limitations of authorized users and usage parameters
5. Appendix 1 - Technical Requirements: Minimum system requirements and technical specifications for software operation
6. Appendix 2 - Security Requirements: Security standards and protocols required for software implementation
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