Scope of Software License Agreements

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The use of software can be granted through corresponding licenses. It is important to distinguish whether the licensee is granted simple or exclusive usage rights.

IT law is not an independent legal area but intersects with a multitude of legal fields such as trademark law, competition law, data protection law, or copyright law. Particularly in the development and granting of software licenses, there are strong parallels in IT law to copyright law, explains the business law firm MTR Rechtsanwälte, which also advises its clients in IT law.

The developer of software is also its legal author. This means that he also owns the copyright to the program and the use of the software by third parties is prohibited without an appropriate license. The developer of the software can grant corresponding licenses for the use of the software. A key aspect is whether the user is granted a simple or exclusive usage right.

Every computer user generally has a simple usage right for the use of standard software. They may use the software as contractually agreed, but do not have this usage right exclusively. The simple usage right can also be granted to several other users. The scope of use can be specified in the license agreement and may be limited in terms of time or location. In practice, software is often no longer purchased but rather so-called downloading contracts are concluded, which allow for the use of the software for a set period.

For companies, off-the-shelf software solutions are often insufficient. They require tailored solutions. In such cases, the software is specially developed for the customer and an exclusive usage right is usually granted. Since the specially developed software often has to be implemented into the already existing software environment, this is often contractually agreed upon, as well as the maintenance of the software so that the programs function without disruptions.

Many other points can still be contractually regulated. Core points that a software license agreement should include are the scope of performance, duration, number of users, and costs.

In IT law, competent lawyers advise on software contracts.