An end-user license agreement (EULA) is a contract between a software developer and the end-user of the software. It is sometimes also called software license agreement, licensed application end-user agreement, and browse-wrap license.
What is the End User License Agreement?
The EULA provides the end-user with a license to use the software, app, or program. For example, a software developer may create an iPhone app or a desktop computer program that they make available to business owners or the general public.
The EULA specifies the terms and conditions of uses, and legal clauses that limit the developer’s obligations as well. The license details how the app or program can be used and the relevant restrictions.
Before the end-user can download and use an app or program, they are required to read through the EULA and accept the terms that have been set by the vendor.
Signing a EULA
When the end-user first opens the app, they will sign digitally to confirm that they have read the terms. Before a digital signature is sent, the installation can’t be fully completed.
It’s important to note that the digital signature that is sent by the end-user before downloading an app or program is not legally binding. It’s not a contract in the same way an employer and employee sign a contract.
The agreement doesn’t actually protect the end-user. Instead, it protects the developer of the software as the original owner.
It’s more of an agreement between the developer and end-user where the latter is effectively renting the software from the former. The terms of the agreement often include restrictions to prevent the end-user from sharing the software with others.
Common Clauses and Restrictions in End-User License Agreements
The clauses that are detailed in a EULA are determined by the developer of the software. They address the licensing restrictions, warranties, and liability of the agreement, and provide protection for the developer.
Some of the most common clauses found in EULAs include:
- Restrictions of Use – as it sounds, this part of the EULA details the potential limitations of use for the end-user. It protects against copyright infringement, illegal distribution, reverse engineering, and duplication of the software.
- Termination of License – this part of the EULA details the software developer’s right to terminate the license if it expires after a set amount of time or if the end-user breaks the terms of the agreement.
- Warranty Details – every software comes with a warranty, the details of which will be discussed in the EULA. Software warranty clauses state that the software or app comes as it is and the developer is not responsible for making adjustments to the app to meet the end-user’s needs.
- License Granting – another key part of a EULA is the granting details. A license grant states that the license is being granted to the users.
- Site License – this part of the agreement states where the end-user can download the software or app, and whether it can be installed on more than one device.
