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A Software Purchase Agreement spells out the terms when buying software licenses or programs in the Philippines. It details what you're getting, how much you'll pay, and how you can use the software - like installing it on specific computers or sharing it across your organization.

The agreement protects both buyers and sellers under Philippine consumer protection and intellectual property laws. It covers crucial points like technical support, software updates, data privacy compliance, and what happens if something goes wrong. Most Filipino businesses use these agreements for both off-the-shelf software purchases and custom-developed solutions.

Use a Software Purchase Agreement when buying any significant software for your Philippine business - from basic accounting programs to enterprise-wide systems. This becomes especially important for custom-developed solutions, multi-user licenses, or software that will handle sensitive customer data covered by the Data Privacy Act.

The agreement matters most when purchasing software that's critical to your operations, costs more than ₱100,000, or requires ongoing support and updates. It's essential for compliance-heavy industries like banking, healthcare, and BPO companies where software reliability and data security directly impact regulatory requirements.

• Software License Purchase Agreement: Covers single-user to enterprise-wide software licenses, with customizable sections for usage rights, technical support levels, and maintenance terms. Can be adapted for perpetual licenses, subscription-based software, or custom-developed solutions. Commonly modified based on factors like deployment method (cloud vs. on-premise), user count, and integration requirements with existing systems.

• Software Vendors: Philippine or international companies selling software licenses, including their legal teams who draft initial agreements and sales representatives who negotiate terms
• Corporate Buyers: Business owners, IT managers, and procurement officers who review and sign agreements on behalf of their organizations
• Legal Counsel: Both in-house and external lawyers who review, modify, and ensure agreements comply with Philippine laws, especially data privacy regulations
• IT Departments: Technical teams responsible for implementing the software and ensuring compliance with license terms

• Software Details: List exact product names, version numbers, number of licenses, and deployment method (cloud/on-premise)
• User Requirements: Document how many people need access, which features they'll use, and any technical specifications
• Payment Terms: Gather pricing details, payment schedule, and currency preferences in Philippine Peso
• Support Needs: Define maintenance requirements, update expectations, and technical support levels
• Data Handling: Outline data storage locations and privacy requirements under Philippine Data Privacy Act
• Compliance Check: Use our platform to generate a legally-sound agreement that meets all Philippine requirements

• Party Details: Complete legal names, addresses, and authorized representatives of both vendor and purchaser
• License Terms: Clear description of software, usage rights, number of users, and deployment scope
• Payment Details: Price, payment schedule, taxes, and currency specifications in Philippine Peso
• Data Protection: Compliance measures with the Data Privacy Act of 2012 and data handling protocols
• Support Terms: Maintenance, updates, technical support levels, and response times
• Termination Rights: Conditions for ending the agreement and post-termination obligations
• Governing Law: Explicitly state Philippine law as governing jurisdiction

A Software Purchase Agreement differs significantly from a Software Development Agreement in several key aspects, though both are common in Philippine technology transactions.

• Core Purpose: Software Purchase Agreements cover ready-made software licensing and delivery, while Development Agreements outline terms for creating custom software
• Timeline Focus: Purchase agreements emphasize immediate delivery and ongoing usage rights, whereas development agreements detail project milestones and development phases
• Intellectual Property: Purchase agreements typically involve licensed use of existing IP, while development agreements must address ownership of newly created code and materials
• Support Scope: Purchase agreements focus on standard maintenance and updates, but development agreements include specifications, testing requirements, and acceptance criteria