License Agreement for Software Usage Rights

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Whether at home or in the office – many people encounter IT law daily. It involves, among other things, the use of software and the necessary licenses for it.

Those who wish to use their computer need the appropriate software for their requirements. The usage rights for the necessary software must be acquired. Those who use software without the necessary license for it must expect cease and desist orders and damage claims, explains the business law firm MTR Rechtsanwälte.

IT law closely aligns with copyright in licensing agreements. Thus, a software developer automatically has copyright to the program without needing to register their rights to ensure they are protected. This also means that anyone wishing to use this software must have the appropriate license for it.

The extent of usage rights when selling or providing the software is generally negotiable between the parties. Licenses can be restricted in terms of content usage as well as spatial or temporal usage of the software. A distinction is made between simple and exclusive usage rights.

If only simple usage rights are transferred, the creator of the software can still grant the usage rights to others. The licensee is entitled to use the software in the agreed manner. Therefore, they should ensure that the granted usage rights are sufficient for their purposes and cover the intended use.

In contrast, if an exclusive license is acquired, the usage rights cannot be transferred to third parties, and the creator is also excluded from further use of the software. The exclusive usage right includes the marketing and exploitation of the program.

If no agreements on the scope of usage rights are made during licensing, according to § 31 paragraph 5 of the Copyright Act (UrhG), the contractual purpose determines the type and scope of usage.

When drafting license agreements, parties should always ensure that usage rights are granted to the necessary extent to avoid future legal disputes. Lawyers experienced in IT law can provide advice.