While this section can be brief, it should include specific language that makes it really clear to the user that if copyright infringement takes place, the user will be held liable for any legal issues that arise. In the event of restriction violations or other issues, the software owner should keep the right to terminate the license. The Termination of Licensing clause is usually absolute, granting strong rights to the licensor of the app rather than the user or buyer.
A disclaimer of warranties is an extremely important clause in any licensing agreement. It essentially states that the app is available as it is and that the developer or owner isn't responsible for making any changes or improvements to better meet the needs or desires of the end user.
In this clause, the licensor states that they aren't responsible for any damages that could occur as a result of the app.
It's an important clause to include in order to protect the licensor or provider from liability. For example, if someone installs an app on their mobile device and the phone malfunctions as a result, the owner cannot pursue liability from the provider for reparations for the phone that is damaged, even if the app did, in fact, cause the malfunction.
While a licensing agreement will vary from one product to the next, they should always include some basic components, including:. When a customer downloads your software, they're essentially copying your work onto their computer or personal device. If you want to maintain any control over how it's used, you should include an EULA in the purchasing or downloading process. If the app or software has to be purchased by the user, they are typically required to agree to the EULA before paying, which means that there is no harm done if the user doesn't agree to the licensing agreement.
Some companies include licensing agreements to maintain control of their image. They may include a clause that states specifically how the software can be used or what material can be put into the app. Licensing agreements are particularly common with mobile apps and social media.
Ultimately, an end-user license agreement protects you, the owner, or licensor of the app from copyright infringement and other misuse of the software, so it's important to include one when you are distributing software to customers.
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Another form of protection is to base extensions on royalties. A licensor will expect the licensee to pay a set amount over time. If that happens, the licensee gets to renew the agreement. If it doesn't, the agreement automatically ends. With so many areas of negotiation for a licensing agreement, anything can cause problems. That's especially true if the attorney who writes the licensing agreement uses language that's too broad.
Still, four areas are the most likely causes of a licensing agreement dispute:. The main areas of concern are the same for licensor and licensee.
With an agreement, both parties have an understanding of how to approach intellectual property. Without one, the parties face the danger of lost time and money plus the frustration of a failed business negotiation. Think of the situation from the perspective of a clothing manufacturer. Brands like professional sports teams, music artists, and movies all add value to a shirt. A licensor would want to manufacture goods that use these brands.
The licensor would want payment for the license. The license agreement is how the two parties work out a deal that benefits both parties. This agreement gives the user the ability to use the product.
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