Being an entrepreneur before you launch your software solution, you might want to protect your intellectual property. That’s where you need to create a software license agreement that helps you to protect your idea and have intellectual property rights in your hands.

But you might have the following questions in your mind.

How to write a software license agreement
How to create a license without investing much effort
What are the important clauses to consider in the agreement?

As a leading software company in Canada, we get similar questions from our clients on a daily basis. To help you, we have created a free software license agreement template.

To download our template, you need to perform the two following steps.

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To create a strong license agreement, you need to cover its important clauses. Here are the most important clauses that every software license should have.

Table of Contents

8 Factors Important Clauses to Have in a Software License

While creating a software license, you will find a lot of formats. As there are no fixed formats to use, you must not forget to include the important clauses in your software license. Each software license agreement has similar components. So, let’s check the most important clauses.

Clauses	Definition
Limitation of Liability	This clause of a software agreement describes the software owners’ liability in uncertain conditions.
Non-exclusivity	This clause of a software agreement allows the owner of the software to provide the rights to use intellectual property.
Non-transferability	Within this clause, a software owner restricts users who can further transfer the rights to use the software application.
Breach of Contract	Specifies the right of a software owner to revoke the license if any clause of the software license gets breached.
Termination	This clause includes all the details of the termination process. This allows software owners to revoke or terminate software access if any suspicious activities are found.
Device Usage Limitations	This clause allows users of the software to know whether the software can be installed on single or multiple devices.
Modification in Software	Allows users to know whether they have any rights to make modifications to software or not. If you have rights, then how should the software be modified?
Retention of Right	This clause offers superiority to the owner of the software as it describes that even if the software is used by users but it solely remains to its owner.
Governing of Law	Includes the information that if any disputes happen, then it is advisable to resolve them in the same jurisdiction where the software owner operates.

As you are now aware of the important clause in a software license, let’s know about the benefits of having a software license agreement.

Benefits of a Software License Agreement

Here are five core benefits of creating a software license agreement for your software.

Get Control and Sell of Your Software
Having a software license agreement allows you to protect your software from getting resold by your end-users. Allows you to restrict users on how they can use your software as per your restrictions and limitations. So, end-users do not have complete control of your software.
Restrict Abusive Use of Your Software
One of the top advantages of creating a software license for your software is to restrict users who make abusive or illegal use of your software. It even allows you to terminate or revoke the software license if you find any abusive activities done through your software that harms society.
Limits the Liability of Your Software
While creating a software license, you need to include limitations of liabilities. A software license allows you to limit your liability and save you from unnecessary lawsuits. This might result in wasting your resources and time which could be utilized to improve your software.
Protects You From Unnecessary Responsibilities
Allows you to state that your software will be available as it is for each and every user. This is important to disclose because it might happen that if any user installs your software get 100% uptime and no bugs. Whereas, another user might get an issue and face it because it is not possible to entire bug-free software. That’s where including a clause of disclaimer in the agreement helps you to not be responsible for your end users’ data loss or sales.
Offers You the Right to Revoke the End-user License
A software license agreement allows you to have complete control of your software solution. So you have the right to revoke the software license of any end-user. You can revoke your license without providing any reason and at any time. This way, a software owner has complete control of the software solution. In addition, it even allows end-users to know that they don’t have endless or complete control of your software solution. That’s it.

If you are an entrepreneur and developed a software solution, you must have a software license to protect intellectual property rights. Download our free software license agreement template to easily create your software license.

If you have any queries or questions, connect with us. We are a leading software company in Toronto, Canada, having experience in developing custom software and mobile solutions.