END USER LICENSE AGREEMENT (EULA)
[Name of Licensed Software]
This End-User License Agreement (EULA) is a legal agreement between [Licensee] and the mentioned author [Licensor: Name of developer] of this Software for the software product identified above, which includes computer software and may include associated media, printed materials, and “online” or electronic documentation (“Software Product”).
By installing, copying, or otherwise using the Software Product, you agree to be bounded by the terms of this EULA. If you do not agree to the terms of this EULA, do not install or use the Software Product.
SOFTWARE PRODUCT LICENSE
a) [Software name] is being distributed as [describe how its being distributed, e.g., Freeware for personal, commercial use, non-profit organization, educational purpose.] It may be included with CD-ROM/DVD-ROM distributions. You are NOT allowed to make a charge for distributing this Software (either for profit or merely to recover your media and distribution costs) whether as a stand-alone product, or as part of a compilation or anthology, nor to use it for supporting your business or customers. It may be distributed freely on any website or through any other distribution mechanism, as long as no part of it is changed in any way.
1. Grant of License. This EULA grants you the following rights:
Installation and Use. You may install and use an unlimited number of copies of the Software Product.
Reproduction and Distribution. You may reproduce and distribute an unlimited number of copies of the Software Product; provided that each copy shall be a true and complete copy, including all copyright and trademark notices, and shall be accompanied by a copy of this EULA.
Copies of the Software Product may be distributed as a standalone product or included with your own product as long as The Software Product is not sold or included in a product or package that intends to receive benefits through the inclusion of the Software Product.
The Software Product may be included in any free or non-profit packages or products.
2. Description of Rights and Limitations. Limitations on Reverse Engineering, Decompilation, Disassembly and change (add,delete or modify) the resources in the compiled the assembly. You may not reverse engineer, decompile, or disassemble the Software Product, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation.
Update and Maintenance : [Optional: Insert upgrade provisions, e.g., X upgrades are FREE of charge.]
Separation of Components. The Software Product is licensed as a single product. Its component parts may not be separated for use on more than one computer.
Software Transfer. You may permanently transfer all of your rights under this EULA, provided the recipient agrees to the terms of this EULA.
Termination. Without prejudice to any other rights, the Author of this Software may terminate this EULA if you fail to comply with the terms and conditions of this EULA. In such event, you must destroy all copies of the Software Product and all of its component parts.
3. Copyright. All title and copyrights in and to the Software Product (including but not limited to any images, photographs, clipart, libraries, and examples incorporated into the Software Product), the accompanying printed materials, and any copies of the Software Product are owned by the Author of this Software. The Software Product is protected by copyright laws and international treaty provisions. Therefore, you must treat the Software Product like any other copyrighted material. The licensed users or licensed company can use all functions, example, templates, clipart, libraries and symbols in the Software Product to create new diagrams and distribute the diagrams.
No Warranties. The Author of this Software expressly disclaims any warranty for the Software Product. The Software Product and any related documentation is provided “as is” without warranty of any kind, either express or implied, including, without limitation, the implied warranties or merchantability, fitness for a particular purpose, or noninfringement. The entire risk arising out of use or performance of the Software Product remains with you.
No Liability for Damages. In no event shall the author of this Software be liable for any special, consequential, incidental or indirect damages whatsoever (including, without limitation, damages for loss of business profits, business interruption, loss of business information, or any other pecuniary loss) arising out of the use of or inability to use this product, even if the Author of this Software is aware of the possibility of such damages and known defects.
This form has been prepared for general informational purposes only. It does not constitute legal advice, advertising, a solicitation, or tax advice. Transmission of this form and the information contained herein is not intended to create, and receipt thereof does not constitute formation of, an attorney-client relationship. You should not rely upon this document or information for any purpose without seeking legal advice from an appropriately licensed attorney, including without limitation to review and provide advice on the terms of this form, the appropriate approvals required in connection with the transactions contemplated by this form, and any securities law and other legal issues contemplated by this form or the transactions contemplated by this form.
What is an End User License Agreement?
An End User License Agreement (EULA) is a contract that is in place between the software's user and developer, specifying how the customer is allowed to use the product. Often, EULA is simply called "software license" by developers and publishers. The contract is in place from the time the end user "accepts" the terms of agreement for a fixed-term usage right or lifetime license of the software. When the user does not agree with the terms, the download or installation is aborted, and the contract is not valid.
End-user agreements are usually displayed in a pop-up window before installing a software product. The EULA is in place to protect the software developer from liability lawsuits related to their product, limiting their accountability for dama. The contract between the software developer and the user is signed based on the "Proxima Nova Rg Regular", Helvetica Neue, Helvetica, Arial, sans-serif;">Electronic Signatures in Global and International Commerce Act< of 2000, a federal legislation.
End User License Agreement: What is it?
The End User License Agreement is not a terms-and-conditions clause, as it is simply focused on the limitations of usage and liability of the company. An EULA generally contains different standard clauses, such as:
Restrictions of use
Termination of licensing
Limitations and warranties
Limitations of liability
All the above clauses clearly define what the user is allowed and prohibited to do. The EULA governs the customer's use of the downloaded for free or purchased. The end user does not acquire ownership to the software; he simply gains usage rights provided by the developer.
Why is End User License Agreement Important?
The End User License Agreement is important for software developers to limit their liabilities and ensure that users are aware of what they are allowed to do with the software, and what is prohibited. It grants the license to the users, so they have the right to make use of the software, provided that they adhere to the terms and conditions, as well as the limitations of the EULA.
The software license agreement covers product warranties and highlights the main limitations of use, such as the prohibition of
Transferring the license
Renting out the software to third parties
Leasing the software to third parties
Lending, selling, or redistributing the license to another user without the permission of the developers
Reverse engineering, repurposing, or decompiling the software
Examples: Using End User License Agreement
While End User License Agreements can look the same, it is important to read them. Software users will have to know whether there is a restriction attached to the license and that they might prevent the downloading of additional software. According to PC Mag, people who do not read the agreements risk getting spyware on their computer or mobile device without knowing about it.
Using an EULA is also important for companies to protect their copyrights and software. In a 2001 federal court ruling, Adobe found that - because of the wording of its ELUA end users had the right to sell individual components of the downloaded software. Further, the End User Software License Agreement protects both parties in case the program is not used as intended by the author and user.
Examples: Not Using End User License Agreement
End User License Agreements are generally attached to software applications that can be downloaded from the internet. The Electronic Frontier Foundation claims that EULAs are more similar to electronic mandates than contracts, as users do not have a choice to accept, reject, or negotiate the terms of download.
Some of the aspects of the license agreement are already covered and governed by the terms and conditions and general federal or international copyright legislation. Therefore, there might be an overlap between different documents and rules that apply to the end user and software developer.
End User License Agreements are not applicable to the sale of software that was developed for a specific company or customer, and is not used by other parties.
Frequently Asked Questions
Do I need to read the EULA every time I download a software product?
It is recommended that you read the agreement in order to ensure that you are aware of what you can do with the software.You also can prevent downloads of not-requested additional software by reading through the text.
What are the common prohibitions of end user license agreements?
Generally, you are not allowed to distribute, sell, reverse engineer, modify, or repurpose the software.
Are EULAs legally binding?
Based on the eSign act of 2000, clicking the "Accept" button before downloading a software product is acceptance of the contract terms.
What is a shrink-wrap software agreement?
It refers to the pop-up window that appears before software is downloaded from the internet. Its basis is that End User License Agreements before the internet used to be packaged with the software CD. Shrink-wrap license is also called click-wrap license.
Can I refuse the EULA?
You can click the "decline" button, however, this will result in the termination of the download. However, if the software package includes additional programs you do not want to download, you can untick these before you click "agree," and you will still be able to use the main software.
Do End User License Agreements provide warranties and damages?
Most licenses restrict damages claims and limit warranties. As all developers' agreements are different, it is important to read the "small print."
Steps to Create an End User License Agreement
Examine what the intended use of the software is.
Consult with an intellectual property attorney.
Include the following clauses: license granting, restrictions of use, related agreements and governing laws, infringement information, termination of licensing, disclaimers and warranties, limitations and liability.
Create an EULA and implement it on your download page.
Test your EULA.
Review further legal agreements and terms on your website, consulting with a software licensing professional.
The most common mistake of end users is that they fail to read the agreement and click automatically on the "Accept" button. This is often referred to as the "click-through aspect"
Companies often use templates for creating their EULA, instead of consulting with an intellectual property rights lawyer. As a result, they might fail to protect their development internationally, and limit the restrictions for certain types of users.
End-user software licenses are generally too long to read and have language that is hard to understand for most customers. Making sure that the principles are clearly communicated is essential.
Do you need help with End User License Agreements? See UpCounsel's End User License Agreement resources to find the answers. UpCounsel's intellectual rights attorneys are hand-picked from Yale and Harvard and are able to deal with any software-related queries.