Software Licence Agreement – Annual Licence Fee


A Software Licencing Agreement caters for the development of a software project or test plan, installation, customisations, and enhancements. The Agreement also addresses unforeseen problems such as viruses, hacking or the Client’s abuse of the licenses.

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Annual Licence Fee

Summary A Software Licence Agreement is useful for a software company that provides software licences to customers in exchange for an annual license fee. The Agreement caters for the development of a project or test plan, installation, customisations and enhancements, and sets the parameters in respect of the Client’s rights in the Software Licenses. The Agreement also addresses unforeseen problems such as viruses, hacking or the Client’s abuse of the licenses.

Why do I need a Software Licence Agreement? If your business provides a software development service to Clients, or if you have developed or acquired the rights to a software product that you offer to Clients, then you should use a written contract with your Clients. This document may be used in conjunction with our Software Support Agreement.

If the software licences fees are paid monthly we have a Software Licence Agreement for that as well.

What does the Software Licence Agreement say? The template Software Support Agreement consists of: A definition section; A grant of the license; Fees and terms of payment; Term and Termination; Project Plan, Installation, and Customisations and Enhancements; Intellectual Property Rights and Confidentiality; Support and Warranties; Exclusions and Limitation of Liability; Notices and General provisions

What does the standard Software Licence Agreement look like? The agreement contains four sections, and can be printed onto eight pages. The sections are:

  • A details section: this requires you to fill in the Licensee’s details.
  • The terms and conditions: the terms and conditions of the agreement are set out in a double-column format.
  • Schedule – Licenses: this section details the number of licenses required and associated issues.
  • Schedule – Fees: this section sets out the monthly fees payable, and any up-front costs.

What do you need to do to use the Software Licence Agreement template?

  •  Read the document to ensure that it suits your requirements. Make changes as required.
  • Complete the Schedules with the software license details and fees
  • Read the terms and conditions and ensure you are comfortable with the provisions
  • Complete the Licensee Details page, and get your Client to sign, accepting the terms and conditions
  • You sign in acceptance.

Also viewed: General Support and Maintenance of IT Infrastructure Contract

Also known as: Software Licence Agreement; License Contract; Software License Contract; Software Licence Contract


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