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Software
licensing
agreements
A guide on how to license your software
and how to choose the right type of
licensing agreement for your software.
Your choice of license agreement
for your software depends on what
you wish to grant to a user.
A software license is
an agreement between
a developer and user
on how a software product
can be used.
What is a
software license?
Some licensing agreements
can be general and apply to all users
or they can be more specific
to particular users.
Other type of software licensing agreements
allow users to modify the app’s code.
Clauses for a software licensing agreement
All licensing agreements for software contain similar provisions.
1 - Permitted use
The software license agreement must
indicate whether the use of the app is
exclusive to the one licensed user or it’s
limited to particular purposes.
1 - Permitted use
2 - Restrictions
2 - Restrictions
The “Restrictions” clause in a software
license agreement often overlaps with the
“Permitted use”, but many include specific
restrictions in the agreement such as:
No reverse engineering
Limiting the number of copies
No derivative uses
3 - Intellectual
property rights
3 - Intellectual
property rights
If you want to keep your software
closed-source, your licensing agreement
will need a section explaining that the
copyright belongs to you.
4 - Warranties
and limitations
4 - Warranties and
limitations
If you allow users to create derivative
works with your software code, that has
the ability to open you to liability if it
doesn’t work for them.
5 - Redistributions
terms
5 - Redistributions
terms
If a user creates a profitable product
using your software code, do you expect
compensation? Any royalty requirements
need to be indicated clearly to the user.
How to choose a software license
Choosing a license form depends on whether your
software is
free,
purchased or
contains open source code.
1 - Broad license
1 - Broad license
A “broad license” allows users to modify
the software and use the code in their
own proprietary products, including those
products that are distributed for profit.
2 - GNU license
2 - GNU license
While using the GNU license for your software
leaves your software open to being changed
for personal preferences, there are still
limitations on using it for proprietary
products or distributing it.
Sharing is encouraged, but not for a price.
3 - EULA license
3 - EULA license
The EULA license for a software is used
to limit use.
The EULA agreement does not
allow for derivative products or
reverse engineering either.
3 - EULA license
The EULA agreement can offer additional
intellectual property protection that would
not be present in other type of software
agreements.
A GNU license encourages free distribution, but Microsoft’s
own licensing and subscription agreement available through
Microsoft products is more limiting:
The EULA agreement is normally enough if all you
wish to authorize is use.
However, if you offer open source code, going to a
GNU or modified GNU is likely a good way to go.
Disclaimer: Legal information is not legal advice
termsfeed.com
@termsfeed
Credits
The following icons are from The Noun Project:
on slide 7 "programmer" by Gan Khoo,
on slide 9 "code" by Brennan Novak,
on slide 13 "Repair" by Arthur Shlain,
on slide 15 "Allow Redistribution"
and on slide 19 "Clean Code" by icon 54.

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Software License Agreements

  • 2. A guide on how to license your software and how to choose the right type of licensing agreement for your software.
  • 3. Your choice of license agreement for your software depends on what you wish to grant to a user.
  • 4. A software license is an agreement between a developer and user on how a software product can be used. What is a software license?
  • 5. Some licensing agreements can be general and apply to all users or they can be more specific to particular users. Other type of software licensing agreements allow users to modify the app’s code.
  • 6. Clauses for a software licensing agreement All licensing agreements for software contain similar provisions.
  • 8. The software license agreement must indicate whether the use of the app is exclusive to the one licensed user or it’s limited to particular purposes. 1 - Permitted use
  • 10. 2 - Restrictions The “Restrictions” clause in a software license agreement often overlaps with the “Permitted use”, but many include specific restrictions in the agreement such as: No reverse engineering Limiting the number of copies No derivative uses
  • 12. 3 - Intellectual property rights If you want to keep your software closed-source, your licensing agreement will need a section explaining that the copyright belongs to you.
  • 13. 4 - Warranties and limitations
  • 14. 4 - Warranties and limitations If you allow users to create derivative works with your software code, that has the ability to open you to liability if it doesn’t work for them.
  • 16. 5 - Redistributions terms If a user creates a profitable product using your software code, do you expect compensation? Any royalty requirements need to be indicated clearly to the user.
  • 17. How to choose a software license
  • 18. Choosing a license form depends on whether your software is free, purchased or contains open source code.
  • 19. 1 - Broad license
  • 20. 1 - Broad license A “broad license” allows users to modify the software and use the code in their own proprietary products, including those products that are distributed for profit.
  • 21. 2 - GNU license
  • 22. 2 - GNU license While using the GNU license for your software leaves your software open to being changed for personal preferences, there are still limitations on using it for proprietary products or distributing it. Sharing is encouraged, but not for a price.
  • 23.
  • 24.
  • 25. 3 - EULA license
  • 26. 3 - EULA license The EULA license for a software is used to limit use. The EULA agreement does not allow for derivative products or reverse engineering either.
  • 27. 3 - EULA license The EULA agreement can offer additional intellectual property protection that would not be present in other type of software agreements.
  • 28. A GNU license encourages free distribution, but Microsoft’s own licensing and subscription agreement available through Microsoft products is more limiting:
  • 29. The EULA agreement is normally enough if all you wish to authorize is use. However, if you offer open source code, going to a GNU or modified GNU is likely a good way to go.
  • 30. Disclaimer: Legal information is not legal advice termsfeed.com @termsfeed
  • 31. Credits The following icons are from The Noun Project: on slide 7 "programmer" by Gan Khoo, on slide 9 "code" by Brennan Novak, on slide 13 "Repair" by Arthur Shlain, on slide 15 "Allow Redistribution" and on slide 19 "Clean Code" by icon 54.