An end user licensing agreement is also known as a software licensing agreement. It is used by the licensor, who is usually the distributor of the software or product. It will then need to be agreed to by the purchaser or the user of the software. Most end user licensing agreements are used in a digital format.
There may be different versions of the licensing agreement for different types of users. For example, you may want to have one specifically for individual users and one for government entities or other large corporations.
A EULA, or end user licensing agreement, should include information about the product, the ways that a user is allowed to use the software, and any important disclaimers. The agreement may need to be updated over the course of the product's lifespan with new information and details.
A licensing agreement is needed if:
Common scenarios for needing a licensing agreement include:
Types of licenses include:
If you need a licensing agreement, you should look at a sample license agreement online. When creating a licensing agreement, you should consider including the following parts:
Most business property can be licensed. The most common types of licensed property include: trademarks, digital assets, copyrights, and patent licenses.
To license a property to another, you must first have the rights to the license. Typically this is done by having an original idea and then applying for the appropriate intellectual property protection: a patent, trademark, or copyright.
If you have an idea that you think others may want to use, it is advisable to seek legal counsel. A lawyer can assist you with making sure that you are protected and with drafting a fair licensing agreement that protects all parties. If you are negotiating a license with another company, they will typically be represented by an attorney. If the other party has an attorney, it makes sense to retain your own attorney to protect your interests.
If you do not have a licensing agreement, the owner of IP will be unable to make money off of it or control its usage. Parties who wish to use that IP might not have access to it or be unable to make money from it because too many other parties have access to it.
Without a licensing agreement, licensors suffer from lost time preventing others from using their IP, lost money for businesses using IP without paying for it, and loss of goodwill by having their trademark diluted.
Licensees suffer because they lose time defending their right to use the IP, the lose money because they are unable to capitalize on the goodwill of the IP, and they may have to deal with cease and desist letters and lawsuits from the IP owner.