The Permanent Software License agreement is essential when a software owner wishes to grant indefinite usage rights while maintaining intellectual property ownership. This document is commonly used in the United States for commercial software distribution, establishing clear terms for perpetual use, defining permitted activities, and protecting both parties' interests. It includes critical provisions for compliance with U.S. federal and state laws, particularly regarding intellectual property, warranties, and liability limitations. The agreement is suitable for both standard commercial software and customized solutions, requiring careful consideration of usage scope, technical specifications, and support arrangements.
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1. Parties: Identification of licensor and licensee, including legal entities and addresses
2. Background: Context of the agreement and brief description of the software being licensed
3. Definitions: Key terms used throughout the agreement including Software, Documentation, Intellectual Property Rights
4. License Grant: Scope and nature of the software license, including usage rights and restrictions
5. Intellectual Property Rights: Ownership of IP and protection of rights
6. Payment Terms: License fees and payment conditions
7. Warranties and Disclaimers: Software warranties and limitations
8. Limitation of Liability: Caps on liability and exclusions
9. Term and Termination: Duration and conditions for termination
10. Governing Law: Applicable law and jurisdiction
1. Export Controls: Required if software may be exported internationally
2. Source Code Escrow: Terms for source code protection and access conditions for enterprise-critical software
3. Data Protection: Privacy and data handling provisions for software processing personal data
4. Professional Services: Terms for additional implementation and consulting services
5. Service Level Agreement: Performance standards and metrics for cloud-based software
1. Schedule 1 - Software Description: Detailed description of licensed software and components
2. Schedule 2 - Technical Requirements: Hardware and software requirements for operation
3. Schedule 3 - Support and Maintenance Terms: Details of support services and maintenance obligations
4. Schedule 4 - License Fees: Detailed pricing structure and payment terms
5. Schedule 5 - Acceptable Use Policy: Rules and restrictions for software usage
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