What is the difference between perpetual and subscription software licenses?

A perpetual license grants indefinite rights to use the software after a one-time payment. A subscription license requires ongoing payments (monthly or annual) and usage rights end when the subscription expires or is cancelled.

What restrictions are typically included in software license agreements?

Common restrictions include: prohibiting reverse engineering, modification, sublicensing, and competitive analysis. Licenses also typically limit the number of users, devices, and specify whether the license is transferable.

What is a software maintenance and support agreement?

A maintenance and support agreement covers technical assistance, bug fixes, and software updates. Support levels range from standard business hours to 24/7 premium support, often for an additional annual fee.

What warranties should be included in a software license agreement?

Common warranties include: software will perform substantially as documented, no third-party IP infringement, and the licensor has authority to grant the license. Warranty periods typically range from 30 days to 1 year.

What happens when a software license is terminated?

Upon termination, all license rights end immediately. The licensee must cease using the software, destroy all copies, and certify compliance. Provisions for IP ownership, confidentiality, and liability typically survive termination.

What is a site-wide software license?

A site-wide license allows unlimited users at a single location or organization to use the software. This is cost-effective for large organizations compared to per-seat licensing, though it may be limited to specific physical or legal boundaries.

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Licensor (Software Owner)

Company Name

Business Address

State

Entity Type

Licensee (Customer)

Company/Individual Name

Address

Contact Person

Software Details

Software Name

Version

Description

Delivery Method

License Type

License Model

Number of Users/Seats

Number of Devices

License is transferable

Sublicensing permitted

Pricing & Payment

Effective Date

License Fee ($)

Payment Type

Payment Due

Support & Maintenance

Include maintenance and support

Annual Support Fee ($)

Support Level

Include software updates

Include major version upgrades

Use Restrictions

Permitted Use

Prohibit reverse engineering

Prohibit modification

Prohibit competitive analysis

Legal Terms

Warranty Period

Governing Law

Liability Limit

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