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Understanding Software License Agreements

Software companies often deal with software license agreements, or end-user license agreements (EULA), in order to protect their exclusive rights over the software. Generally, these agreements will outline the purchaser’s rights as well as appropriate uses of the software.

EULAs may be delivered to the consumer in two ways. When these contracts are presented in digital formats that require the user to “accept” the terms in order to continue the installation process, it is called a click-through or click-wrap. While these click-through options are more widely used, companies may also provide a hard copy of their EULA contained in the packaging of the software. This second options is sometimes referred to as shrink-wrapped.

Benefits of a Software License Agreement

A well-written software license agreement will protect your software from a number of different potential threats, including situations wherein:

  • A user attempts to reverse engineer your software in order to reproduce and undercut your service
  • A user redistributes your software with others for free

EULAs have been upheld in a number of controversial court cases by judges who recognize the need for software companies to protect themselves and their interests. For this reason, it is imperative that a qualified attorney is consulted when drawing up a software license.

Contact a Software License Attorney in Dallas/Fort Worth

If you are preparing to launch your new software, or if you are considering making a change in your terms of agreement, it is in your best interest to seek the advice of an experienced intellectual property attorney. At Gagnon, Peacock & Vereeke, P.C., you can count on our extensive knowledge base to help protect your interests. Call our Dallas office today at (214) 317-4448 for more information.

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