In addition to the definition of applicable law, your licensing agreement may contain dispute resolution provisions that extend to mandatory arbitration, voluntary mediation, escalating executive issues within the parties` organizations, or waiving a jury when issues are dealt with through the courts. A software license agreement is a legal contract between the software owner and its buyer. The main purpose of the software license agreement is to protect the interests of the company that sells the software as well as the buyer. The agreement acts as a complete package to the buyer that contains details on where, how and how often it can be installed, the price of the software, restrictions on the use of the software. In addition, the agreement also mentions the buyer`s ability to copy, modify or redistribute them. In a basic software licensing agreement, the vendor`s support of the software probably consists of a telephone support provided by the vendor`s helpdesk during normal opening hours and new versions of the software that provide minor improvements or bug fixes. Support is usually provided free of charge during the software warranty period. At the end of this period, the creditor charges the customer a support obligation, and the price is usually a percentage of the creditor`s current software license fee. For each level of assistance beyond a routine assistance service or troubleshooting obligation provided after the software guarantee expires, a separate support agreement should be established, defining the provider`s support obligations, support costs, performance standards (including response times) for support and penalties if these standards are not met.
It is important to ensure that the software support agreement complies with the licensing agreement. For financial reasons, the licensee may restrict the definition of the licensee. The broader the definition of the taker, the more companies or individuals who have access to the software and the use of licensed software, which reduces the potential royalties that a licensee can receive. Some licensing agreements allow licensed companies to use the licensed software. Many of these agreements define „partners“ that cover only the licensee`s parent company and subsidiaries, owned at least 51% by the licensee or its parent company, in order to limit the use of licensed software. A software license agreement is a contract by which a copyright holder (conedant) concedes the use of one specific software to another (licensed).