What is an end user licence agreement (EULA)?
The basics: This end user licence agreement template is for the licensing of off-the-shelf software which can be bought and accessed through a browser. The end user licence agreement template operates as standard terms and conditions for the use of the software and sets out the user’s obligations and restrictions that apply to its use of the software.
Drafted from a supplier’s perspective: As it is software suppliers / licensors who prepare and present end user licence agreements to end users, this end user licence agreement template assumes that you are the software supplier / licensor and is therefore drafted pro-supplier.
Option to sign or use click-wrap: The end user licence agreement template includes options so that it can either be signed by the user or instead be accepted by a click-wrap method.
What is click-wrap: Click-wrap is a way of ensuring that users accept terms of use, without having to sign a contract to agree to those terms formally. The user’s agreement to the terms is demonstrated by a “tick-box” when the user either enters their payment details, creates a user account or downloads the software. It is important that the tick box includes clear acceptance wording, so there can be no argument that the terms have not been accepted.
Why should you have an end user licence agreement in place?
Protects your rights in the software: An end user licence agreement will protect your rights in software, as the supplier / licensor of software, by defining a clear scope in which a user can use the software and therefore preventing them from using it in other ways. The end user licence agreement template will make it clear that the rights to the software are owned by you and/or your licensors and not the user, and also limit your liability to the user in the event that there are issues with the software.
Restrictions on the user’s use of the software: The end user licence agreement template sets out clearly defined prohibitions and restrictions in relation to the user’s use of the software, and allows you to revoke the end user licence agreement (or suspend the user’s access to the software) where the end-user does not comply with those terms. This means that the user is prevented from exploiting your software.
Key provisions: This end user licence agreement template contains key provisions in relation to:
- the scope of the software licence granted to the end user;
- restrictions on use of the software by the end user;
- intellectual property right protections (in favour of you as the software supplier);
- limits on your liability; and
- disclaimers and warranty exclusions.
When should this end user licence agreement template be used?
B2B or B2C: The end user licence agreement template includes the option for it to be used with business users and/or consumer users. If you are selling software to consumers, they must be given additional rights in order to comply with consumer protection laws. The rights that relate to the use of software are included in this end user licence agreement template - however, the rights relating to the actual purchase (e.g. rights to cancel the purchase) would be set out in the terms of sale and not a EULA. Docue's template online terms for the sale of digital content should therefore be used in conjunction with this end user licence agreement template where software is being sold to consumers.
Assumptions: The end user licence agreement template makes the following assumptions:
- If the user is responsible for paying for the use of the software, the software fees are not high (less than a few thousand per year). If higher fees, please see the Software Licence Agreement;
- The software will be used by a user based in the UK; and
- The software supplier company is a company registered in England and Wales.
Why Docue?
With Docue, you can create a top-quality end user licence agreement in minutes. The service includes model clauses designed by business lawyers to help you draft the contract yourself and tailor it to your needs.
Signatures can be collected electronically, and all contracts you make are saved in your company's own contract account - Docue Drive.
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