Software Business

When it comes to software and your rights on a product in which you have invested time, financial resources and significant human effort, license agreements are not to be taken lightly. Be they in the form of shrink-wrap licenses or click-through licenses, their importance is unquestionable.

Here are some of the benefits of end user license agreements:

• They clearly establish your property rights on the software
• They protect your company's intellectual rights over the software
• They protect you from lawsuits filed against you on the basis of terms that have not been read
• They exempt you from any responsibility on malfunctioning software if your terms have not been respected

It Is Recommendable That You ...

• Allow prospective users to see your EULA before purchasing your software. The best solution is an evaluation version of your product, free of charge, which will allow them to get an idea on what they would embark on when buying the full product.
• Be specific on the limitations and restrictions that you impose on the use of your software. Don't be vague, as this can be held against you in court.
• Let the users know what to expect if they use your software and do your best to meet their needs.
• Avoid installing spyware on the user's computer along with the software, which might tamper with the system's performances. Whether you like it or not, in spite of your specifically mentioning in the EULA that anything related to the software's performance and influence on the user's system is strictly confidential, people will find out and the repercussions could be negative, most of the times in a financial way.
• Make the important terms of your EULA as visible as possible. Anyway, be aware that free of charge tools have been created, which read, highlight and allow users to see the most important information in your software license agreement.
• Avoid using a language that is much too difficult to understand by end users. Be transparent.
• Include a refund policy in your user license agreement, stating in which cases a user could be entitled to a full or partial refund, and let users know that such a policy exists.
• State specifically in what circumstances (if ever) a user can sell your software (the copy they have a license on), so as to avoid any hassle.
• Find a way to notify the users about changes in your policy on the software, on the license agreements. Give them a chance to decide on their own if updates are good for them or if they still agree to your terms. Keep an open mind.

Conclusions

It is not absolutely necessary to write your user license agreements using terms of unfathomable complexity. Common language can be used to create these documents that will protect your work and investment. Nevertheless, have a specialist oversee the process of writing the EULA, namely a lawyer that is specialized in such matters.

Terms and conditions could be subject to interpretations, and it is only a trained person who can give you advice on how to properly write such a contract. Make sure you understand the laws under which the EULA is created so that you cover all the legal aspects pertaining to you and your intellectual property. And above all, respect your prospective customers, be they large corporations or just some minor domestic users.

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