Whether you’re a software developer who is selling your applications to others or a software reseller to end users, you want to make sure that the licenses your customers receive don’t give away too many legal rights.
One common error that can cause headaches is not taking into account any parts of your app that include third-party licensed code (e.g., open source code). The terms and conditions of these third-party licenses will affect what goes into your software licenses to customers (e.g., a EULA).
Another frequent mistake in software contracts is giving away too much, primarily by failing to explicitly state what the customer cannot do with your app.
For instance, if you don’t want the license to be transferable to someone else, that should be clearly stated in the license agreement. And if you don’t want a reseller to rebrand (white label) your app when selling it, that should be explicit too in the license.
An important rule to remember is that contracts (including software licenses) are generally construed against the party drafting it if there’s any ambiguity. So it’s important to make licensing language clear in addition to concise.
Do you need help protecting yourself and your application with the right software license? It’s probably time to schedule a consultation with Software Lawyer Mike Young.