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Dual Software License Template for Canada

A comprehensive software licensing agreement governed by Canadian law that provides two distinct licensing options for the same software product. This agreement structure allows software providers to offer both commercial and open source licensing terms, enabling flexible distribution strategies while maintaining intellectual property rights. The document includes detailed terms for both license types, covering usage rights, restrictions, warranties, support obligations, and compliance with Canadian federal and provincial regulations, particularly focusing on intellectual property, privacy, and consumer protection laws.

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What is a Dual Software License?

This Dual Software License agreement is designed for software providers operating under Canadian jurisdiction who wish to implement a flexible licensing strategy for their software products. It enables companies to maintain both proprietary commercial licensing for revenue generation and open source licensing for community engagement and market penetration. The document addresses the complex requirements of Canadian federal and provincial laws, including intellectual property protection, privacy regulations, and consumer protection measures. It's particularly suitable for software companies looking to balance commercial interests with open source community benefits, providing comprehensive terms for both licensing models while ensuring legal compliance and risk management.

What sections should be included in a Dual Software License?

1. Parties: Identification of the licensor and licensee, including full legal names and addresses

2. Background: Context of the agreement, description of the software, and purpose of dual licensing

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical terms, license types, and key concepts

4. License Grant - Commercial: Specific terms, scope, and rights granted under the commercial license

5. License Grant - Open Source: Specific terms, scope, and rights granted under the open source license

6. License Fees and Payment: Commercial license fee structure, payment terms, and conditions

7. Intellectual Property Rights: Ownership of IP, protection of rights, and handling of modifications

8. License Restrictions: Specific restrictions and limitations for both license types

9. Technical Requirements: Software specifications, system requirements, and technical limitations

10. Support and Maintenance: Terms for technical support and maintenance services

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration of licenses, renewal terms, and termination conditions

13. Warranties and Disclaimers: Warranty terms for each license type and associated disclaimers

14. Limitation of Liability: Liability limitations and exclusions for both license types

15. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Dual Software License?

1. Distribution Rights: Include when software redistribution is permitted under either license type

2. Contributor License: Include when accepting contributions from third parties is anticipated

3. Patent License: Include when software includes patented technology

4. Export Controls: Include when software may be subject to export regulations

5. Service Level Agreement: Include when offering specific performance guarantees for commercial licenses

6. Data Protection: Include when software processes personal data

7. Third-Party Software: Include when software incorporates third-party components

8. Source Code Escrow: Include when offering source code escrow services to commercial licensees

What schedules should be included in a Dual Software License?

1. Schedule A - Software Description: Detailed technical description of the software, including components and functionality

2. Schedule B - Commercial License Fees: Detailed fee structure and payment terms for commercial licenses

3. Schedule C - Technical Specifications: Detailed technical requirements and specifications

4. Schedule D - Support Service Levels: Details of support and maintenance services for commercial licenses

5. Appendix 1 - Open Source License Text: Full text of the open source license being used

6. Appendix 2 - Acceptable Use Policy: Detailed terms of acceptable use for both license types

7. Appendix 3 - Third-Party Licenses: List and terms of third-party software licenses

Authors

Alex Denne

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

Jurisdiction

Canada

Document Type

License Agreement

Cost

Free to use

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