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Software Licence Contract for the United Kingdom

Software Licence Contract Template for England and Wales

A Software Licence Contract under English and Welsh law is a legally binding agreement that governs the terms under which software can be used by a licensee. It outlines the scope of permitted use, payment terms, intellectual property rights, warranties, and obligations of both parties. The agreement is subject to English and Welsh legislation, including the Copyright, Designs and Patents Act 1988, and where applicable, data protection laws and consumer protection regulations.

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Software Licence Contract

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What is a Software Licence Contract?

The Software Licence Contract is essential for organizations seeking to formalize the terms of software usage. This agreement, governed by English and Welsh law, establishes the relationship between software owners and users, defining usage rights, restrictions, and obligations. It's particularly crucial in protecting intellectual property rights while ensuring clarity on maintenance, support, and liability issues. The contract addresses key aspects including licensing terms, fees, warranties, and compliance with relevant legislation such as the Copyright, Designs and Patents Act 1988 and data protection regulations.

What sections should be included in a Software Licence Contract?

1. Parties: Identification and details of the licensor and licensee

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

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Scope and nature of the licence being granted

5. Licence Fees: Payment terms and fee structure

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

7. Warranties and Representations: Guarantees regarding software functionality and performance

8. Term and Termination: Duration and circumstances for ending the agreement

9. Governing Law and Jurisdiction: Applicable law and dispute resolution

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

1. Data Protection: GDPR compliance terms for personal data processing

2. Source Code Escrow: Terms for source code protection in business-critical software implementations

3. Service Levels: Performance metrics and standards for specific performance guarantees

4. Export Controls: Compliance with export regulations for international licensing

What schedules should be included in a Software Licence Contract?

1. Software Description: Detailed technical specifications of the software

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

3. Service Level Agreement: Detailed performance metrics and remedies

4. Maintenance and Support: Terms of technical support and updates

5. Acceptable Use Policy: Rules governing software usage

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: Core legislation protecting software as literary work, defining rights of copyright holders and duration of copyright protection. Essential for software licensing terms.

Consumer Rights Act 2015: Governs B2C relationships, specifically addressing digital content quality, fitness for purpose, and consumer protection provisions in software contracts.

Data Protection Act 2018 and UK GDPR: Regulates data processing requirements, data protection obligations, and cross-border data transfers in software operations.

Computer Misuse Act 1990: Addresses unauthorized access provisions and security considerations in software usage and licensing.

Electronic Commerce (EC Directive) Regulations 2002: Sets requirements for electronic contracting and information provision obligations in digital transactions.

Contract Law Fundamentals: Basic principles including offer, acceptance, consideration, and intention to create legal relations applicable to software licensing.

Competition Law: Governs anti-competitive provisions and territory restrictions in software licensing agreements.

Trade Secrets Protection: Legal framework for protecting confidential information and trade secrets in software licensing.

Intellectual Property Rights: General IP protection framework beyond copyright, including patents and trademarks relevant to software.

Export Control Regulations: Rules governing international distribution and export of software products and technology.

Distance Selling Regulations: Regulations governing contracts made at a distance, particularly relevant for software sold online.

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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