In the business license model, a company can acquire a license that authorizes a specified number of user rights. In such a model, a well-developed license would at least explain what constitutes a user, how users can be added and deleted, what users` rights are on different license grants, the cost of purchasing new users and the cost of purchasing the original group of users. But the choices to structure as each of these conditions would be totally dependent on the business model and the product offering made available by the software company. Therefore, if the chosen terms are deleted and inserted from an inconsistent form agreement, it is almost certain that the terms chosen will be wrong and make no sense. 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. MaRS has created a software licensing model to optimize activity for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and facilitates the negotiation of terms between investors and startups, the model you can use at your own risk is yours. Please note the non-responsibility below.
A software license agreement gives the licensee a non-exclusive and non-transferable right to use software.