Technology Template

Free Software License Agreement Template

A software license agreement grants rights to use software under specific conditions.

Template

Copy this markdown, replace the {{variables}}, and send via API.

Markdown
# Software License Agreement

**Licensor:** {{licensorName}}
**Licensee:** {{licenseeName}}
**Software:** {{softwareName}}
**Date:** {{date}}

## License Grant

{{licenseType}} license to use the Software for {{purpose}}.

## Restrictions

{{restrictions}}

## Fees

{{licenseFees}}

## Support

{{supportTerms}}

## Term

{{licenseTerm}}

## Ownership

Licensor retains all intellectual property rights.

Send for e-signature

curl
curl -X POST https://signb.ee/api/send \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "content": "YOUR_RENDERED_MARKDOWN",
    "senderName": "Your Name",
    "senderEmail": "you@company.com",
    "recipientName": "Recipient",
    "recipientEmail": "recipient@email.com"
  }'

What happens next

  1. Signbee converts the markdown to a professional PDF
  2. Recipient gets an email with a signing link
  3. Both parties sign with an animated handwriting signature
  4. Both receive the signed PDF with a SHA-256 certificate

All signatures are legally binding under the ESIGN Act, eIDAS, and ECA.

More details

A software licence agreement grants the right to use software without transferring ownership. The licensor retains all intellectual property rights; the licensee gets permission to use the software under specified conditions. Every commercial software product — from enterprise platforms to mobile apps — needs a licence agreement.

Types of software licence: - Perpetual: One-time payment for indefinite use. The licensee owns the right to use the specific version forever, but may need to pay separately for updates and support. - Subscription: Recurring payment for continued access. When payments stop, the right to use the software ends. Most modern software uses this model. - Per-seat: Priced per user. Each individual who uses the software needs a licence. Common in enterprise software. - Site licence: Unlimited users at a single location or organisation. Simpler administration but higher upfront cost. - OEM: Software bundled with hardware. The licence is tied to the device, not the user. - Open source: Free to use, modify, and distribute under terms of the open source licence (MIT, Apache, GPL). Note that 'free' refers to freedom, not necessarily price — commercial support and enterprise features may cost extra.

Key clauses for software licence agreements: 1. Scope of licence — What exactly can the licensee do? Internal use only? Commercial use? Development and production environments? Number of installations? 2. Restrictions — What the licensee cannot do: reverse engineering, decompilation, sublicensing, resale, or modification. Be specific — vague restrictions are harder to enforce. 3. Delivery and acceptance — How is the software delivered (download, physical media, cloud deployment)? What constitutes acceptance? Is there an evaluation period? 4. Maintenance and support — What's included: bug fixes, security patches, version upgrades, technical support hours, and response time SLAs. Often sold as a separate annual maintenance contract. 5. Warranty — The software will perform materially as described in the documentation for a specified period (typically 90 days). Disclaim all other warranties. 6. Liability — Cap liability at licence fees paid. Exclude consequential, indirect, and special damages. Include indemnification for IP infringement claims. 7. Audit rights — The licensor's right to verify the licensee is within their licence terms (number of users, installations, etc.). Common in enterprise agreements.

Source code escrow: For mission-critical software, the licensee may request source code escrow — a third party holds the source code and releases it to the licensee if the licensor goes bankrupt or fails to maintain the software.

Frequently asked questions

What is the difference between a software licence and a SaaS agreement?

A software licence grants the right to install and run software on the licensee's own infrastructure. A SaaS agreement grants access to software hosted by the provider in the cloud. The key differences are deployment model (on-premise vs cloud), payment structure (one-time vs subscription), and data location (customer's servers vs provider's infrastructure).

Can software licence agreements be signed electronically?

Yes. Software licence agreements are valid with electronic signatures under ESIGN (US), eIDAS (EU), and ECA (UK). For enterprise licences, e-signing accelerates procurement — both parties can execute the agreement remotely.

What is a source code escrow?

Source code escrow is an arrangement where a third party holds the software's source code and releases it to the licensee if specific trigger events occur (licensor bankruptcy, failure to maintain, breach of agreement). It protects licensees who depend on mission-critical software from vendor risk.

Related resources

Send this template for signing — free, no credit card.