Dual Software License

Dual Software License Template for United States

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Key Requirements PROMPT example:

"I need a Dual Software License agreement for my AI analytics software that will offer both a paid enterprise version and a limited open-source community version, with the commercial license including priority support and additional features starting March 2025."

Document background

The Dual Software License agreement is designed for software providers who wish to maintain both commercial and open source distribution channels in the United States market. This contract type allows organizations to monetize their software through commercial licensing while simultaneously fostering open source community engagement. The document addresses key aspects including intellectual property rights, usage restrictions, warranty terms, and liability limitations, complying with federal and state software licensing regulations. It's particularly relevant for companies transitioning from purely open source to hybrid business models.

Suggested Sections

1. Parties: Identification of licensor and licensee

2. Background: Context of the agreement and purpose of the dual license structure

3. Definitions: Key terms used throughout the agreement

4. License Grant: Detailed terms of both license types and conditions for each

5. License Restrictions: Limitations and prohibited uses under each license type

6. Intellectual Property Rights: Ownership and protection of IP

7. Term and Termination: Duration and termination conditions for each license type

Optional Sections

1. Export Controls: Required if software may be exported internationally

2. Source Code Escrow: Terms for source code protection and escrow arrangements for enterprise/commercial licenses

3. Data Protection: Privacy and data handling provisions for software processing personal data

Suggested Schedules

1. Schedule A - Licensed Software: Detailed description of software components and versions

2. Schedule B - License Fees: Pricing and payment terms for commercial license

3. Schedule C - Support Services: Details of technical support and maintenance

4. Appendix 1 - Open Source Components: List of open source components and applicable licenses

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

alex.den.21@genieai.co

Relevant legal definitions

Agreement

Confidential Information

Effective Date
Intellectual Property Rights

Licensed Software

Term
Territory

User Data

Clauses

Relevant Industries

Technology
Enterprise Software
SaaS
Open Source Community

Relevant Teams

Legal
Engineering
Product Management
Sales
Open Source Program Office

Relevant Roles

Chief Technology Officer
Software Development Manager
Legal Counsel
Product Manager
Open Source Compliance Officer

Industries

US Copyright Act: Federal law (17 U.S.C.) governing copyright protection for software and code, including registration, duration of protection, and infringement remedies

Digital Millennium Copyright Act (DMCA): Federal law addressing digital copyright issues, anti-circumvention provisions, and safe harbor protections for online service providers

Computer Software Protection Act: Federal legislation specifically focused on protecting computer software and preventing unauthorized copying and distribution

Federal Trade Commission Act: Federal consumer protection law governing unfair or deceptive practices in commerce, including software licensing

Export Administration Regulations: Federal regulations controlling the export of technology and software from the United States to other countries

Uniform Commercial Code (UCC): State-adopted uniform law, particularly Article 2B, governing commercial transactions including software licensing

State Contract Laws: Various state-specific laws governing contract formation, enforcement, and interpretation

State Consumer Protection Laws: State-specific laws protecting consumers in software licensing transactions

State Data Privacy Laws: State-specific regulations governing data protection and privacy requirements in software applications

Patent Laws: Federal laws protecting novel inventions and technological innovations in software

Trade Secret Laws: Federal and state laws protecting proprietary information and trade secrets in software

Open Source Compliance: Legal requirements for incorporating and distributing open-source software components

GDPR: European Union's General Data Protection Regulation affecting software handling EU resident data

International Copyright Treaties: International agreements protecting software copyright across national borders

HIPAA: Health Insurance Portability and Accountability Act regulations for healthcare-related software

GLBA: Gramm-Leach-Bliley Act regulations for financial services software

FERPA: Family Educational Rights and Privacy Act regulations for educational software

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