Licensees should be careful to limit the duration of the warranty. Many licensees require a one-year guarantee. This is a hidden risk to the licensee, as the licensee can terminate the licence agreement during the warranty period and request a refund if the donor has a substantial infringement. A shorter warranty for a maintenance period, provided as part of a properly drafted and separate maintenance contract, can solve this problem. “Licence duration” refers to your authorized license period for the software as specified in an order. A typical software license gives the licensee, usually an end user, permission to use one or more copies of software in a way that might otherwise constitute a copyright infringement of the software owner`s exclusive rights under copyright. Unless expressly provided, the purchaser may not make the software or documentation available or distribute to third parties by transfer, sublicensing or any other means; (2) copy, adapt, recompil, decompil, decompil or modify all or part of the software or documentation; or (3) to use the software to work in or as a time-sharing, outsourcing or service environment or to allow third parties to access the software. Software companies often enter into specific agreements with large companies and public authorities, which include specially designed support contracts and guarantees. In each licensing agreement, it is also important to include a provision granting a monetary policy refund to the taker if a “repair or replacement” does not meet its essential objective.
If a court finds that the licensee`s guarantee “does not meet its essential objective”, i.e. the licensee has not granted a viable remedy to the taker, some courts will overturn the contractual exclusion of the consequential damages awarded by the licensee, which could give rise to unlimited liability on behalf of the licensee. The issue of remedial action needs to be carefully considered. Once a licensee has installed a system, it can be very difficult or tedious to exercise a right of withdrawal and get a refund. (Even for an online service, the time spent studying, negotiating, training, data migration and acquiring the technologies needed to implement a new system can make cancellation very detrimental or in practice for the licensee/subscriber).) Therefore, it is generally important to require the licensee to make every effort to resolve the issues. The main effect of this form of licensing is that if the ownership of the software remains in the hands of the software publisher, the end user must accept the license of the software. In other words, without the acceptance of the license, the end user cannot use the software at all. An example of such a proprietary software license is the license for Microsoft Windows. As with proprietary software licenses, this license contains a broad list of activities that are limited, for example.B.: reverse engineering, simultaneous use of software by multiple users, and the publication of repositories or performance tests. “licensed copies,” the number of copies of the software and documentation granted to the licensee.
If the licensee is able to know or access information about confidential licensees, the licensee must also agree to keep the information confidential. If this information is customer data such as personal, financial or medical data, you should check whether the licensee must accept specific rules, such as compliance with Gramm-Leach-Bliley, HIPAA or the RGPD, for example. B; they should at least agree to comply with all applicable laws. (If you have access to sensitive information, pay attention to a residual clause that will benefit the licensee).)