Terms of Service

End-user license agreements provide a simple and efficient means of protecting a software publisher’s intellectual property. It is a legal contract between the software developer or vendor and the user who purchases or downloads the software. This agreement outlines the terms and conditions under which the software can be used.
Many EULAs specify how a software application can be used. For example, some applications may be licensed for non-commercial use at no cost. In contrast, commercial businesses must pay a licensing fee based on the number of users, the volume of records processed, or even the size of the business. Most EULAs contain provisions that prohibit end users from distributing the software in ways that might be detrimental to the developer. Some even include provisions prohibiting end users from openly criticizing the software or the company that produced it.
What provisions should an EULA include, and what potential problems should parties to an end-user license agreement consider?

A familiar example of EULA

Anyone who has installed computer software added an app to their mobile phone, or subscribed to an online software service will be familiar with an end-user license agreement or EULA. EULAs help to protect the intellectual property rights of software developers. Still, they often contain many other provisions to strengthen the publisher’s legal position and discourage licensees from taking action against them.