Whether you are purchasing or providing software it is essential that you understand the key elements of software licence agreements. Here, our IT and Telecoms Specialists offer some useful guidelines.
What is the software?
The software licence should detail what the software is and in what form it will be delivered. For example, it is important to know whether the suppliers are providing ‘Source code’ or ‘Object code’ software. This (and the terms of the licence) will determine whether the licensee of the software can easily develop the software themselves (Source code) – which is usually only the case for bespoke software – or whether they will need the supplier to maintain and develop the software (object source) which is usually the case. Alternatively, the software may be hosted by the supplier in a SaaS (software as a service) environment.To avoid future disputes, the licence should set out exactly which version of the software is being provided together with the extent to which the licence covers future versions. [Read more…]