The Application Software License Agreement is a crucial legal document used when a software provider wishes to grant usage rights to their software while retaining ownership of the intellectual property. This agreement, governed by Swiss law, is essential for both software companies and businesses acquiring software licenses. It comprehensively covers license scope, implementation requirements, maintenance services, data protection obligations (particularly under Swiss FADP), and risk allocation between parties. The document is particularly relevant in the Swiss market where data protection and privacy considerations are paramount, and should comply with Swiss contract law principles under the Code of Obligations. It's commonly used in enterprise software deployments, SaaS implementations, and other software distribution scenarios where clear terms of use and compliance requirements need to be established.
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1. Parties: Identification of the licensor and licensee with full legal details
2. Background: Context of the agreement and brief description of the software
3. Definitions: Defined terms used throughout the agreement
4. License Grant: Scope of the software license, usage rights, and restrictions
5. License Fees and Payment: Financial terms, payment schedule, and late payment consequences
6. Delivery and Implementation: Software delivery method, installation, and acceptance procedures
7. Intellectual Property Rights: Ownership of IP rights and protection measures
8. Warranties and Representations: Software performance guarantees and quality assurances
9. Support and Maintenance: Technical support scope, maintenance services, and service levels
10. Data Protection and Security: Data handling obligations and security requirements
11. Confidentiality: Protection of confidential information and trade secrets
12. Liability and Indemnification: Limitation of liability and indemnification obligations
13. Term and Termination: Duration, renewal, and termination conditions
14. General Provisions: Standard legal clauses including governing law, jurisdiction, and notices
1. Source Code Escrow: Terms for source code escrow arrangements, used when licensee requires additional security
2. Third-Party Software: Provisions regarding third-party components, needed when software includes external dependencies
3. Professional Services: Additional services terms, included when implementation or customization services are required
4. Service Level Agreement: Detailed performance metrics and remedies, used for cloud-based or critical software
5. Audit Rights: Software usage audit provisions, included for complex enterprise licenses
6. Export Control: Export compliance terms, needed for international distribution
7. Insurance: Insurance requirements, included for high-value or high-risk implementations
1. Schedule 1 - Licensed Software: Detailed description of licensed software components and functionality
2. Schedule 2 - Technical Requirements: Hardware and software requirements for operation
3. Schedule 3 - Support Services: Detailed support and maintenance procedures
4. Schedule 4 - Service Level Agreement: Performance metrics, response times, and service credits
5. Schedule 5 - Fee Schedule: Detailed breakdown of license fees and payment terms
6. Schedule 6 - Data Processing Agreement: Detailed data protection and processing terms
7. Appendix A - Acceptable Use Policy: Guidelines for acceptable use of the software
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