The end-user License Agreement defines the rights and obligations of the developer company and the end user. The license agreement plays a vital role in ensuring security for both the developer and users in Belarus. This article examines why an end-user license agreement is needed, what benefits it brings to both parties and what conditions it may contain.
End-user license agreement in international practice
An EULA (End User License Agreement) is a document concluded between a software developer and an end user. It establishes the program’s terms of use, protects the developer’s interests, gives him control over the use and distribution of his product, and provides legal protection for users.
For what reason do companies want to enter into an EULA license agreement
The license agreement is an important document that sets out the terms and conditions of use of the software created by the developer for the end user. Here are a few reasons why having a license agreement is essential:
- Legal protection: The License Agreement is a legally binding document that protects the interests of both parties. It defines the rights and obligations of the developer and the end user and prevents misunderstandings and disputes.
- Limitation of use: The License Agreement establishes rules for using the software, such as restrictions on the number of installed copies, use on a certain number of devices, etc. In particular, the license agreement aims to prevent pirated copying of software so that users do not use it in violation of the developer’s interests.
- Royalties: In some cases, the use of the software is associated with royalties. The license agreement defines the terms of such payments, which allows both parties to be aware of all financial obligations.
- Installation, updates and support: Usually, when installing software, the user is asked to agree to the terms necessary for the developer in the license agreement. The license agreement may include provisions for access to software updates or technical support from the developer.
- Confidentiality and security: The Agreement may contain provisions on the confidentiality of information collected by the software and obligations to ensure user data’s security. It is also important for the developer to protect himself from guarantees in case of uncontrolled software use conditions.
- Liability: The License Agreement defines liability for violating the terms or use of the software for unacceptable purposes and limits the developer’s liability for damage that may occur due to the use of the software.
In general, the license agreement establishes the procedure for interaction between the developer and the end user, ensuring clarity and transparency of the terms of use of the software product.
The form and format of license agreements
There is no unified EULA template in world practice. Usually, the standard license agreements of large companies (for example, Microsoft) serve as an example for creating agreements for smaller companies.
License agreements may exist in the following formats:
- On paper, signed by the parties to the transaction.
- In the form of a packaging license that appears electronically when installing the software: “click-through agreements”.
Most of us are more familiar with the format where the choice is offered: to agree or refuse the license agreement required to use the software. Many license agreements establish rules for the use of the application, prohibiting users from distributing it in ways that could harm the developer. Some contracts also prohibit open criticism of the software or the company that created it.
What do the terms of the end-user license agreement depend on?
1. One of the terms of the EULA is the terms on which the license is granted. It is in the developer’s interests to describe these terms in detail to protect the software from being used, not in the developer’s interests. This section prescribes in particular:
- An exclusive or non-exclusive license is granted to the user.
- How the user can use the software: whether it can make changes, modify, or only reproduce.
Detailed formulations will be useful for tracking incidents of software misuse and for removing or sanctioning a user’s account for a reasonable reason.
The terms of the license agreement may provide that the software can be installed and used during the term of the EULA license.
An end-user license agreement is usually concluded when a user purchases a software subscription and accesses an updated service.
2. The terms of the license may contain lists of permitted and (or) prohibited use. Usually, the permitted actions include the usual actions for using a licensed product: installation, reproduction, and allowed modifications. Prohibited actions may consist of distributing, making copies, using them for advertising purposes, using them on multiple devices, extracting source code, or using them to violate the rights of third parties.
3. The license terms may involve creating images, texts, music, audiovisual effects, etc., inside the software shell. When such creation is possible, the issue of intellectual property rights to newly created objects may arise. The developer may provide information on who owns such newly created intellectual property objects in the license agreement. For example, they may belong to the developer and licensors. They get the right to protect their intellectual property if the end user agrees to such terms of the license agreement.
There may also be the opposite condition: the license agreement may provide that the rights to the content users create inside the program belong to the users, not the developer.
The terms of the end-user license agreement depend on the developer’s intentions and vision of the prospects for the development and security of the distribution and use of his product.
The game project’s license agreement can include many variations of the terms. To ensure full protection of your product, it is recommended that you consider the product’s features, possible ways of using it, and prohibitions on certain user actions.
Contact us
If you have any questions related to the development and practical application of the EULA license agreement, as well as foreign and local judicial practice concerning such an agreement, we will be happy to help you! Our long-term experience in the field of legal support of development will help you resolve any disputes.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
