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Commercial Software License Agreement for Australia

Commercial Software License Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions under which software is licensed from a provider to a customer for commercial use. The agreement covers essential aspects including license scope, usage rights, restrictions, fees, intellectual property protection, warranties, support services, and liability limitations. It incorporates Australian consumer law requirements, privacy regulations, and intellectual property protections while ensuring compliance with local electronic transactions legislation and contract law principles.

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Commercial Software License Agreement

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What is a Commercial Software License Agreement?

The Commercial Software License Agreement is essential for businesses providing or acquiring software solutions in Australia. This document establishes the legal framework for software licensing transactions, ensuring compliance with Australian legislation including the Competition and Consumer Act 2010, Copyright Act 1968, and Privacy Act 1988. It is typically used when a software provider wishes to grant a customer the right to use their software while retaining ownership and protecting their intellectual property rights. The agreement covers critical aspects such as license scope, usage restrictions, fees, support services, warranties, and liability limitations, while incorporating specific Australian legal requirements and protections. It's particularly important for commercial transactions where the software is being licensed for business purposes, requiring careful consideration of business continuity, data protection, and service level commitments.

What sections should be included in a Commercial Software License Agreement?

1. Parties: Identifies and provides full legal details of the licensor and licensee

2. Background: Sets out the context of the agreement and parties' objectives

3. Definitions: Defines key terms used throughout the agreement

4. License Grant: Specifies the scope, nature, and limitations of the software license

5. License Restrictions: Details prohibited uses and activities regarding the software

6. Intellectual Property Rights: Confirms ownership and protection of IP in the software

7. Fees and Payment: Details license fees, payment terms, and consequences of non-payment

8. Delivery and Installation: Covers software delivery method and installation requirements

9. Documentation and Training: Specifies documentation to be provided and any training obligations

10. Warranties: Sets out warranties regarding software functionality and performance

11. Support and Maintenance: Details ongoing support and maintenance services

12. Confidentiality: Protects confidential information exchanged between parties

13. Term and Termination: Specifies agreement duration and termination rights

14. Liability and Indemnification: Allocates risks and responsibilities between parties

15. General Provisions: Contains standard legal provisions including governing law, disputes, and notices

What sections are optional to include in a Commercial Software License Agreement?

1. Implementation Services: Used when the licensor provides software implementation services

2. Service Levels: Include when specific performance metrics are guaranteed

3. Data Protection: Required when personal data processing is involved

4. Third Party Software: Needed when third-party components are included in the licensed software

5. Hardware Requirements: Include when specific hardware is required or provided

6. Disaster Recovery: Important for business-critical software applications

7. Source Code Escrow: Used when source code access might be required in specific circumstances

8. Export Controls: Necessary for software subject to export regulations

9. Professional Services: Include when additional professional services are provided

What schedules should be included in a Commercial Software License Agreement?

1. Schedule 1 - Software Description: Detailed description of the licensed software and components

2. Schedule 2 - License Fees: Breakdown of all applicable fees and payment schedules

3. Schedule 3 - Technical Specifications: Technical requirements and specifications for the software

4. Schedule 4 - Support Services: Detailed support and maintenance terms and service levels

5. Schedule 5 - Acceptance Testing: Acceptance testing procedures and criteria

6. Schedule 6 - Authorized Users: Details of authorized users and usage permissions

7. Appendix A - Data Processing Terms: Specific terms relating to personal data processing if applicable

8. Appendix B - Security Requirements: Security standards and requirements for the software

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

User Agreement

Sector

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Professional Services

Education

Government

Telecommunications

Mining and Resources

Construction

Transport and Logistics

Media and Entertainment

Energy and Utilities

Relevant Teams

Legal

Information Technology

Procurement

Finance

Risk and Compliance

Operations

Vendor Management

Software Asset Management

Information Security

Commercial Operations

Business Development

Relevant Roles

Chief Technology Officer

IT Director

Software Licensing Manager

Procurement Manager

Legal Counsel

Commercial Contract Manager

Chief Information Officer

Technology Procurement Specialist

IT Asset Manager

Vendor Management Director

Head of Legal

Chief Financial Officer

Risk and Compliance Manager

IT Operations Manager

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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