Software License Agreement

Definition - What does Software License Agreement mean?

A software license agreement is the legal contract between the licensor and/or author and the purchaser of a piece of software which establishes the purchaser's rights. A software license agreement details how and when the software can be used, and provides any restrictions that are imposed on the software. A software license agreement also defines and protects the rights of the parties involved in a clear and concise manner. Most of software license agreements are in digital form and are not presented to the purchaser until the purchase is complete.

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Techopedia explains Software License Agreement

A free software license agreement gives the purchaser the rights to modify and redistribute the software and related components, while a proprietary software license agreement forbids this. Software companies also make special license agreements and warranties for large business and government entities that may be different from those provided to the general consumer.

Most of the time, a license agreement is enclosed within the software package, and can't be accessed by purchaser until the purchase is complete. License agreements generally also contain warranty provisions and patent information. Certain agreements make it necessary for the purchaser to sign and/or mail back the agreement. However, the purchaser can decline the software license agreement, thus surrendering his or her right to use the software.