EULA License Agreements: Everything You Need to Know
EULA is a contract that exists between the licensor of a piece of software and the buyer, which spells out the buyer’s rights to the use of software.3 min read
An end user license agreement, or EULA, (often referred to as a software license) is a contract that exists between the licensor of a piece of software and the buyer, which spells out the buyer’s rights to the use of software. It provides the buyer rights to the use of the software, provided that it is used in accordance with the licensors specifications. Today, it is customary for software to be downloaded from the internet, so the EULA is generally an online document that the user reads and then clicks on a box to accept the terms, as opposed to the days in which software was purchased in physical form and installed manually. This generally required the agreement to be mailed into the licensor after purchase. The latter is referred to as a click-wrap license, while the former is considered a shrink-wrap license.
Things to Consider
It is worth noting that end user license agreements are not legally binding. Rather, it is simply an agreement between the licensor and the buyer that the software will be used in the manner set forth by the licensor. Additionally, a EULA does not protect the buyer against fraud, as it is not intended to be a warranty, but rather it is designed to protect the licensor against issues of copyright infringement, such as making copies of the software.
Additionally, software purchasers should be aware that the licensor maintains ownership of the license; generally, the buyer is actually renting or leasing the software. Particularly in cases of software that is downloaded from the internet, the licensor may have access to any and all data that is entered using their software. This means that the vendor can potentially read it, share or sell it, at any time.
As click-wrap licenses are the most commonplace these days, it is important to note that if, for some reason, you should choose to not accept the terms and conditions of the contract, the licensor will not complete the download of the software. This method of EULA obviously removes any possibility of negotiating the terms and conditions.
Which One to Use
- Both can provide language regarding making unauthorized copies of your program.
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