A software licence agreement (also known as an end-user licence agreement) is a contract between the owner or licensor of a computer software program and the purchaser of the software. It agreement outlines the purchaser’s right to use the software and any restrictions or conditions imposed on this use.    

Application for business people

Business people often need to use specialised software programs to enable their business to function smoothly and efficiently. When a software developer writes a piece of code which becomes a software program, it can be difficult to control how that code is purchased and used by the general public. That’s where a software licence agreement comes into play.

When a business owner purchases a software program it is very important that he or she is aware of what they are legally permitted to do with it. The purchaser should also clarify whether he or she is entitled to technical support or upgrades, whether there is a warranty, and the costs of the program (including upfront and any ongoing costs). These terms, along with any other factors that may be relevant, are set out in the software licence agreement.

Businesses may also be in the market of developing and selling software programs. In these situations, software licence agreements are designed to protect the proprietary interests of the developer.

6 key things to consider

Some of the most important elements of a software licence agreement include:

  1. What are the payment terms and conditions?
  2. Does the purchaser have any recourse to the licensor if there is a problem with the program?
  3. Is the purchaser entitled to technical support or software upgrades? If so, are there any costs involved?
  4. Is the purchaser entitled to modify, copy or distribute the program?
  5. What are the ownership rights of products developed using the software?
  6. What is the process for resolving disputes between the parties?


Joe Kafrouni
Legal Practitioner Director
Kafrouni Lawyers


The information provided by Kafrouni Lawyers is intended to provide general information and is not legal advice or a substitute for it. Business people should always consult their own legal advisors to discuss their particular circumstances. Kafrouni Lawyers makes no warranties or representations regarding the information and exclude any liability which may arise as a result of the use of this information. This information is the copyright of Kafrouni Lawyers.

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