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Software License Agreement for the United States

Software License Agreement Template for United States

A Software License Agreement is a legal contract governed by U.S. law that establishes the terms and conditions under which software can be used by a licensee. This agreement defines the scope of the license granted, usage restrictions, intellectual property rights, payment terms, and obligations of both parties. It includes provisions for data protection, confidentiality, warranties, and liability limitations, while ensuring compliance with relevant U.S. federal and state regulations. The agreement serves as a comprehensive framework for protecting the software provider's intellectual property while granting specific usage rights to the licensee.

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What is a Software License Agreement?

The Software License Agreement is a crucial document used when a software provider wishes to grant usage rights to their software while maintaining ownership and control. This agreement, governed by U.S. law, is essential for protecting intellectual property rights and establishing clear terms of use. It addresses key aspects such as license scope, fees, maintenance, support, and compliance with relevant regulations. The document is particularly important in today's digital economy, where software distribution and licensing are fundamental to many business operations. Whether for commercial or proprietary software, this agreement helps prevent unauthorized use while providing legal protection for both the licensor and licensee.

What sections should be included in a Software License Agreement?

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

2. Background: Describes the context of the agreement and the software being licensed

3. Definitions: Defines key terms used throughout the agreement

4. Grant of License: Specifies the scope, nature, and limitations of the license granted

5. License Fees: Details the payment terms, amounts, and schedule

6. Intellectual Property Rights: Establishes ownership of IP and protection measures

7. Confidentiality: Defines confidential information and protection obligations

8. Term and Termination: Specifies duration and termination conditions

9. Governing Law: Specifies applicable jurisdiction and dispute resolution

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

1. Support and Maintenance: Details support services and maintenance terms for when ongoing support is part of the agreement

2. Data Protection: Addresses data privacy and security requirements when personal data processing is involved

3. Export Controls: Addresses export compliance requirements when software may be subject to export restrictions

4. Source Code Escrow: Terms for source code protection and access when source code access might be needed in specific circumstances

What schedules should be included in a Software License Agreement?

1. Software Description Schedule: Detailed technical specifications of the licensed software

2. License Fees Schedule: Detailed breakdown of fees and payment terms

3. Service Level Agreement: Performance metrics and service standards

4. Acceptable Use Policy: Rules and restrictions for software usage

5. Data Processing Agreement: Detailed terms for handling personal data

6. Technical Support Schedule: Details of support services and response times

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

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
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Industries

Copyright Act (17 U.S.C.): Core federal legislation governing copyright protection for software and related documentation, establishing rights of reproduction, modification, distribution, and public display

Patent Act (35 U.S.C.): Federal law governing patent protection, relevant for software-related inventions and technological innovations

Trade Secrets Act: Protects confidential business information, including software source code and proprietary algorithms

Trademark Act (Lanham Act): Federal trademark law protecting brands, logos, and product names associated with the software

Uniform Commercial Code (UCC): State-adopted uniform law governing commercial transactions, including software licensing and sales

E-SIGN Act: Federal law ensuring legal validity of electronic signatures and records in commercial transactions

UETA: State-level legislation complementing E-SIGN Act for electronic transactions and signatures

Federal Trade Commission Act: Prohibits unfair or deceptive practices in commerce, including software licensing and marketing

Magnuson-Moss Warranty Act: Federal law governing consumer product warranties, applicable to software sold to consumers

CCPA: California's comprehensive privacy law affecting collection and use of consumer data in software applications

Computer Fraud and Abuse Act: Federal law addressing computer-related fraud and unauthorized access to protected computers

COPPA: Federal law protecting children's privacy online, crucial if software may be used by children under 13

Export Administration Regulations: Federal regulations controlling export of commercial and dual-use software and technology

HIPAA: Federal law governing healthcare data privacy and security, essential for healthcare-related software

Gramm-Leach-Bliley Act: Federal law requiring financial institutions to protect customers' personal information

Sherman Antitrust Act: Primary federal antitrust law preventing monopolistic practices in software licensing and distribution

Clayton Act: Supplements Sherman Act, addressing specific anticompetitive practices and mergers

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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