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The software is protected by copyright as a literary work under 17 U.S.C§ 107(a)(1). Therefore, the basis of a software license agreement is the grant of a copyright license to the licensee; Use of the Software is subject to Licensee`s acceptance and maintenance of the terms of the Software License Agreement, and the License sometimes contains limited rights for reproduction of the Software for Licensee`s internal use. Licensor has developed certain computer programs and related documentation described in Appendix A (the “Products”) and wishes to license Licensee to use the Software. In the Enterprise licensing model, an enterprise can acquire a license that allows a number of user rights. In such a model, a well-crafted license would explain at least what constitutes a user, how users can be added and removed, what rights users have over different licenses, the costs of purchasing new users, and the costs of purchasing the original user group. However, decisions on the structure of each of those concepts depend entirely on the business model and product offering provided by the software company concerned. Therefore, when the chosen terms are cut out and inserted into an unrelated form agreement, it is almost certain that the chosen terms are false and make no sense. Unlike the EULA, a GTC agreement is broader and covers more topics than just licensing the software. Below is an example of a clause in an AESE that covers the granting of a license. Note how clearly it is stated that the license “revocable, non-exclusive, non-transferable, limited…” These restrictions let a user know that they can use the software or application, but that they cannot necessarily use it in the way they want. The End User License Agreement, below, describes an agreement between licensor “Joan J Hughes” and Licensee.

By downloading or using the software, licensee agrees to abide by the specified terms. In the event of a breach of the Terms, Licensee agrees to no longer download or use the Software. The acronym EULA stands for the user`s final license agreement and is sometimes referred to as the software license agreement.