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Paid Software Licence for the United Kingdom

Paid Software Licence Template for England and Wales

A Paid Software Licence agreement is a legally binding contract governed by English and Welsh law that establishes the terms and conditions under which software can be used by a licensee in exchange for payment. The agreement covers crucial aspects including usage rights, restrictions, payment terms, intellectual property protection, warranties, and liability limitations. It ensures compliance with UK software licensing laws, data protection regulations, and consumer protection requirements while protecting both the licensor's intellectual property rights and the licensee's usage rights.

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What is a Paid Software Licence?

A Paid Software Licence agreement is essential when commercializing software products in the UK market. This contract type is specifically designed to comply with English and Welsh law, protecting intellectual property rights while enabling commercial software distribution. It's commonly used when software providers want to grant users the right to use their software for a fee, whether for business or consumer purposes. The agreement addresses critical aspects such as usage scope, payment terms, support obligations, and compliance with UK data protection and consumer protection laws.

What sections should be included in a Paid Software Licence?

1. Parties: Identification of licensor and licensee with full legal details

2. Background: Context of the agreement and brief description of the software

3. Definitions: Key terms used throughout the agreement

4. License Grant: Scope, nature and limitations of the software license

5. License Fees: Payment terms, amounts, and payment schedule

6. Intellectual Property Rights: Ownership and protection of IP rights

7. Restrictions on Use: Limitations and prohibited actions

8. Term and Termination: Duration and ending conditions

9. Warranties and Disclaimers: Quality guarantees and limitations

What sections are optional to include in a Paid Software Licence?

1. Support and Maintenance: Terms for ongoing support services - include when ongoing support is offered

2. Service Levels: Performance metrics and standards - include for enterprise software with uptime requirements

3. Data Processing: Terms for handling personal data - include when personal data is processed

4. Third Party Software: Terms relating to incorporated third-party software - include when third-party components are part of the solution

What schedules should be included in a Paid Software Licence?

1. Software Description: Detailed technical specifications and functionality

2. License Fees Schedule: Detailed breakdown of pricing and payment terms

3. Service Level Agreement: Detailed performance metrics and remedies

4. Support Services Description: Details of support and maintenance services

5. Acceptable Use Policy: Detailed usage guidelines and restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

License Agreement

Cost

Free to use
Relevant legal definitions




































Clauses




































Industries

Copyright, Designs and Patents Act 1988: Primary legislation governing software protection as literary work, rights of copyright holders, duration of copyright protection, and license grant provisions

UK GDPR and Data Protection Act 2018: Legislation governing data protection requirements, processing of personal data, and data transfer provisions

Consumer Rights Act 2015: Legislation covering fair terms requirements, quality of service provisions, consumer protection measures, and right to repair or replacement in B2C contracts

Unfair Contract Terms Act 1977: Legislation governing reasonableness of contract terms, limitation of liability clauses, and exclusion clauses

Electronic Commerce (EC Directive) Regulations 2002: Regulations covering electronic contracting requirements, information provision obligations, and online terms and conditions

Competition Act 1998: Legislation governing anti-competitive provisions and market abuse considerations in commercial agreements

Supply of Goods and Services Act 1982: Legislation covering quality of service, fitness for purpose, and reasonable care and skill requirements

Common Law Contract Principles: Fundamental principles covering contract formation, consideration, and terms and conditions under English common law

Export Control Order 2008: Legislation governing export controls, particularly relevant for software containing encryption and international transfer restrictions

Privacy and Electronic Communications Regulations 2003: Regulations governing electronic communications, cookie laws, and marketing permissions in digital services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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