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If you're a company that distributes software, or you're a programmer then you may want to think about an End User Licence Agreement to protect your intellectual property.
In this guide, we explain what an End User Licence Agreement is, how to write one and where to find an End User Licence Agreement Template.
What's in this guide?
- What is an End User Licence Agreement?
- When should I use the agreement?
- What does an End User Licence Agreement include?
- End User Licence Agreement Vs Terms of Service
- How effective is an End User Licence Agreement?
- Do I need to use a lawyer?
- Find customisable legal templates like End User Licence Agreements online
- How do I write an End User Licence Agreement?
- Where else can I get free legal documents and templates?
- Frequently asked questions
What is an End User Licence Agreement?
In doing so, an EULA protects the rights of the individual or business owner who created their software from issues such as copyright infringement and reverse engineering.
Download this template at Lawpath
When should I use the agreement?
An End User Licence Agreement is commonly used when a company creates proprietary software and wants to add limits to how it's used.
Some instances where this Agreement might be used include:
- To provide a service which could cause harm is misused.
- To set up different user levels.
- To specify consumer rights.
- To set up the rules for user behaviour and state grounds of termination.
- To participate in affiliate programs.
- To process payments and sensitive data.
- To set up rules about how a website or product is used.
What does an End User Licence Agreement include?
There are a few clauses that should be included in every End User Licence Agreement:
- Licence Granting. As this is the main purpose of an End User Licence Agreement, it's important to have a section that states that a licence is being granted.
- Restrictions on Use. A section needs to spell out all the restrictions on the use of the licence. For example, this could be using it on multiple devices, copying the licence or reverse-engineering software.
- Related Agreements. If you have other legal agreements related to the app, software of service, link them. It could be that the user is agreeing to adhere to the terms of other agreements, alongside the End User Licence Agreement.
- Copyright Infringement or Intellectual Property. Infringement issues are very common in this line of work. Add a section detailing what happens if your copyright is infringed.
- Termination of Licensing. A developer needs to keep the right to end the licence if a violation occurs.
- Warranty Disclaimer. Inform end users that if they are not happy with a product, it's not your responsibility to satisfy them.
- Limitations of Liability. This informs end users that you will not be held responsible for any damages that occur when using the product or service.
End User Licence Agreement Vs Terms of Service
A term of service document will govern the relationship between a business, its services and its users. This document covers a broad scope which includes everything from copyright to consumer rights and governing laws. An End User Licence Agreement has a similar purpose but only focuses on the licensing relationship.
You will normally only find an End User Licence Agreement with businesses that deal in software, SaaS or mobile apps. A Terms of Service document is commonly found in most businesses, whether a licence is agreed or not.
How effective is an End User Licence Agreement?
A well-written End User Licence Agreement is very important as limits your obligation as a business. As this agreement must be approved or signed by a user, they are limited by terms you have set.
An End User Licence Agreement can help do the following:
- Limit your liability for damages.
- Maintain control over distribution and use.
- Protect your right to end licences.
- Restrict the product being misused.
Do I need to use a lawyer?
An End User Licence Agreement is a legally binding contract. While it's not strictly necessary for a lawyer to write the agreement, it may well help to have a legal professional look over a draft copy of it.
If you are concerned about writing an End User Licence Agreement, there are many websites which offer samples and templates to help you start the process.
Find customisable legal templates like End User Licence Agreements online
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How do I write an End User Licence Agreement?
When writing an End User Licence Agreement try to:
- Break up the information into bullet points and lists. Avoid using large chunks of text.
- Use broad but specific language that makes the point clear.
- Use Clickwrap. It's the best way of getting your end users to agree to or consent to the agreement.
Include clauses that help protect your rights, your proprietary and intellectual property. Make sure to include clauses that limit your liabilities and manage user expectations.
Where else can I get free legal documents and templates?
Because End User Licence Agreements are such important documents, using a template can be extremely useful. Here is a selection of websites that allow you to view or download an End User Licence Agreement sample for free.
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. Browse through a range of free samples on its website but must sign-up to access customisation options.
- LawDepot. LawDepot supplies a wide selection of free online documents to choose from. Fill them in online before downloading the documents.
- LegalVision. LegalVision offers users unlimited use of legal document templates, including an End User Agreement, for a monthly membership fee of $199.
- Wonder.Legal. Browse a huge amount of legal document templates, all of which can be purchased for a one-time fee.
Frequently asked questions
Where should I display my End User Licence Agreement?
There's no hard and fast rule on where an End User Licence Agreement should be placed. These legal documents are usually placed on a main website's footer.
If you own a software or app, add a link to the installation or download screen. It's beneficial for a user to read the End User Agreement before accessing and using the software.
Do I need a witness when signing an End User Licence Agreement?
No, it's not necessary for there to be witnesses to the signing of an End User Licence Agreement. This agreement is only valid when signed, but typically the terms are accepted upon installation, registration or opening of the software.
Do I need to have an End User Licence Agreement and a Terms and Conditions Agreement?
It is not necessary, but many businesses will have both. The End Use Agreement will deal exclusively with the licence, but the Term and Conditions Agreement will deal with everything else. If you don't grant a licence, you won't need an End User Licence Agreement, if you do you can choose to have one or both of these agreements.
If you don't want to use an End User Licence Agreement, you need to include licence related clauses to your Terms and Conditions Agreement.
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