Software Licensing & EULAs

Can a Third-Party Access or Use Your Software?

Short answer: whether a third party can use or access your software is up to your agreement, not the customer. One court held that letting a third party use the software, even for the customer’s benefit, breached the license. So decide the rule and write it down. This question comes

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Software EULA/SaaS Contract TUNEUP

Short answer: review your EULA or SaaS contract at least once a year, and any time you change your model or launch an offering. The goal is simple: make sure the paper still matches how you actually sell, and simplify it while you are in there. Adjust your contracts to

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Reverse Engineering Software

Copyright law does not stop your customers from reverse engineering your software, your contract has to, and even then courts have carved out fair-use exceptions for interoperability.

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Installed (not used) or Purchased Licenses

Short answer: in most software EULAs, the customer owes you for licenses it installed, not just the ones it actually uses. A reported case involving the Los Angeles County Sheriff drove the point home, and it is a useful teaching tool when a customer claims it should only pay for

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Contract or Policy?

Use a contract when you need a commitment neither side can change unilaterally (caps, indemnities, service levels); use a policy when you need the freedom to change the rules as your business evolves (security practices, support hours, acceptable use).

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Can You Change Your Software Contracts Unilaterally?

Short answer: yes, you can reserve the right to change your software contract, but a clause that lets you change “any term at any time in your sole discretion” can backfire badly. In Harris v. Blockbuster, that exact language made the company’s arbitration clause unenforceable, because a promise you can

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Transfer Software as Part of a Reorganization

Short answer: software license transfer M&A and corporate reorganization scenarios have one controlling question: what does your assignment clause say? Your customer can transfer your software in a reorganization only if your agreement says they can. Transfers on a merger, acquisition, stock sale, asset sale, or internal restructuring are governed

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How a Well Drafted EULA Saved A Lot of Money

Short answer: a well drafted EULA can end a lawsuit before it ever reaches a jury. In Hayes v. SpectorSoft Corporation (E.D. Tenn., November 3, 2009), the software maker won summary judgment and walked away from the case, and the way the end user agreement was written was a big

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