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Restrictive Software License Template for Canada

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Key Requirements PROMPT example:

Restrictive Software License

"I need a Restrictive Software License agreement for enterprise-level cybersecurity software that will be licensed to financial institutions in Canada, with strict usage limitations and audit requirements to ensure compliance with financial sector regulations."

What is a Restrictive Software License?

This Restrictive Software License agreement is designed for use when a software owner needs to maintain strict control over their intellectual property while granting limited usage rights to licensees in Canada. The document is particularly relevant when dealing with proprietary software, trade secrets, or specialized applications requiring enhanced protection. It incorporates essential elements of Canadian federal and provincial legislation, including copyright law, privacy regulations, and consumer protection provisions. The agreement should be used when standard or open-source licenses are insufficient to protect the software owner's interests, and when specific restrictions on use, modification, or distribution are required. This document type is commonly used for enterprise software, specialized industry applications, or software containing sensitive intellectual property that requires careful protection through detailed usage restrictions and confidentiality provisions.

What sections should be included in a Restrictive Software License?

1. Parties: Identification of the licensor and licensee, including full legal names and addresses

2. Background: Context of the agreement, nature of the software, and purpose of the license

3. Definitions: Detailed definitions of technical terms, software components, and key concepts used throughout the agreement

4. Grant of License: Specific rights being granted, scope of the license, and usage limitations

5. License Restrictions: Explicit restrictions on use, modification, reverse engineering, and distribution

6. License Fee and Payment: Payment terms, fee structure, and payment schedule

7. Intellectual Property Rights: Assertion of ownership and protection of IP rights

8. Confidentiality: Protection of confidential information and trade secrets

9. Limited Warranty: Scope of warranty provided and disclaimers

10. Limitation of Liability: Limitations on licensor's liability and caps on damages

11. Term and Termination: Duration of the license and grounds for termination

12. Post-Termination Obligations: Requirements upon termination including software deletion and return of materials

13. General Provisions: Standard legal provisions including governing law, dispute resolution, and entire agreement

What sections are optional to include in a Restrictive Software License?

1. User Data and Privacy: Required if the software collects or processes user data, ensuring PIPEDA compliance

2. Geographic Restrictions: Used when the license needs to restrict usage to specific territories

3. Third-Party Software: Needed when the software incorporates third-party components or dependencies

4. Export Controls: Required for software subject to export regulations

5. Maintenance and Support: Include when offering technical support or maintenance services

6. Audit Rights: Include when licensor requires rights to audit licensee's compliance

7. Service Level Agreement: Required for software provided as a service or with uptime guarantees

8. Security Requirements: Include when specific security protocols or standards must be maintained

What schedules should be included in a Restrictive Software License?

1. Schedule A - Software Description: Detailed technical specifications and description of the licensed software

2. Schedule B - License Fees: Detailed breakdown of license fees, payment structure, and terms

3. Schedule C - Technical Requirements: Minimum system requirements and technical specifications for software operation

4. Schedule D - Support Services: Details of any support or maintenance services provided

5. Appendix 1 - Authorized Users: List of authorized users or user categories if license is restricted

6. Appendix 2 - Restricted Technologies: List of specific technologies or methods that are restricted under the license

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses



































Relevant Industries

Technology

Software Development

Financial Services

Healthcare

Manufacturing

Telecommunications

Education

Government

Professional Services

Research and Development

Gaming and Entertainment

Cybersecurity

Relevant Teams

Legal

Information Technology

Software Development

Compliance

Information Security

Product Management

Procurement

Risk Management

Business Development

Intellectual Property

Relevant Roles

Chief Technology Officer

Software Development Manager

Legal Counsel

Intellectual Property Attorney

Licensing Manager

Contract Administrator

Software Engineer

Security Officer

Compliance Manager

Product Manager

IT Director

Risk Manager

Business Development Executive

Chief Information Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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