Scope Of License Agreement
For example, I recently verified the grant of a license that said, « After licensor accepts licensee`s order, licensee does not have the exclusive right (unless otherwise specified in the order) to use the software exclusively for licensee`s internal business purposes. » It was a standard boilerplate language that was included in a vendor`s form for a very expensive and critical application. Overcharnence is not uncommon. This is often the result of a misunderstanding (or misunderstanding) between the software manufacturer and the licensee as to how and by whom the software is used (although it often results from a company`s inability to track the number of licenses used). If this is a misunderstanding, it normally means that the grant of the licence has not been sufficiently formulated. Are there any limitations in the use of the software? Do you get unlimited access to the software or is it limited to a certain number of authorized users (or « desktops »)? Are you geographically restricted or is use allowed worldwide? Is the licence temporary or permanent? Due to the legal basis they must cover, some licensing agreements are quite long and complex. But most of these agreements cover the same fundamental points. These include the scope of the agreement, including exclusivity or territorial restrictions; financial aspects, including necessary advances, royalties and the calculation of royalties; guarantees for minimum sales; calendars with « to market » dates, contract duration and renewal options; the rights of the lessor to monitoring and quality control, including the procedures to be followed; the minimum stocks to be maintained; and returns and allocations. The extent of any limitation of « access » to the software must be carefully assessed. In order for the software to exploit features that the customer wishes to make available to its customers via the Internet, it is important that such « access » does not violate the limits imposed by the license, who can « use » or « access » the software. It is essential for the customer to verify the scope of the license issued to ensure that the volume of the license is consistent with the proposed use of the software. The customer must take into account the constraints imposed on the use of the software. The default restrictions for software licenses include restrictions for: Instead, you need a written renewal agreement so you won`t be surprised.