Software Licensing Agreements

What is a Service Level Agreement (SLA)?

An SLA is part of a software contract (usually SaaS) that guarantees a certain level of uptime and performance. It defines penalties or credits if the service fails to meet these standards.

Can I terminate a license if the user violates terms?

Yes, a well-drafted agreement includes termination clauses for breach of contract (e.g., reverse engineering, non-payment). Without these clauses, terminating a license can be legally difficult.

How to handle updates and maintenance in the agreement?

The contract should specify whether updates are included in the license fee or charged separately. It should also define the scope of support to prevent "scope creep" where clients demand free custom features.

What implies "Indemnification" in software contracts?

Indemnification clauses protect one party (usually the client) from financial loss if the software infringes on a third party's IP rights. As a developer, you need to carefully limit this liability.

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Software Licensing Agreements and IT Contracts

In the digital age, software is one of a business's most valuable assets. With the growth of the IT sector in Georgia, proper software licensing becomes critically important. A software licensing agreement is a legal document that defines how a user (licensee) can use a program created by a developer or company (licensor). An incorrectly drafted license endangers intellectual property, leads to revenue loss, and may expose the company to legal disputes. This service is essential for both startups and large tech companies wishing to commercialize and protect their products.

Legal.ge offers qualified legal services in drafting and analyzing software licensing agreements. Through our platform, you will find lawyers specializing in IT law and intellectual property. We help clients create licensing models that align with their business strategy and ensure maximum legal protection under Georgian law.

What Does Software Licensing Service Cover?

Our specialists offer a full range of services tailored to software specifics:

  • EULA (End User License Agreement): Drafting agreements regulating usage terms for mass-market consumers.
  • SaaS (Software as a Service) Agreements: Defining terms for cloud service delivery, including data protection and Service Level Agreements (SLA).
  • B2B Licensing Contracts: Preparing individual licensing agreements for corporate clients, customized to specific requirements.
  • Open Source Audit: Checking compatibility of open source licenses (GPL, MIT, Apache) used in the software with the commercial license.
  • IP Protection: Including mechanisms in the contract to protect code, design, and algorithms.
  • Liability Limitations: Developing clauses that protect the developer from damages caused by software bugs or failures.

Common Situations and Scenarios

A typical scenario is launching a SaaS startup. A company creates a CRM system and wants to sell it to other businesses. A lawyer drafts a SaaS agreement defining subscription fees, data storage conditions, and liability in case of server downtime. This protects the company from client claims during technical disruptions.

Another scenario is "White Label" licensing. A developer allows another company to use their software under the latter's brand. In this case, the agreement must clearly delineate intellectual property rights and define ownership of updates and new features. A poorly drafted contract can become grounds for copyright disputes.

Georgian Legislation and Legal Framework

Software licensing is regulated by the Law on Copyright and Related Rights, which protects computer programs as literary works. The Civil Code of Georgia applies to contractual aspects. It is also important to consider the Law on Personal Data Protection, especially for SaaS models where user data is processed.

Process of Receiving Services

The process begins with analyzing the product's technical and business model. A Legal.ge lawyer clarifies how the software is distributed (installation, cloud, mobile app) and the risks associated with its use. Based on this, a draft agreement is created. We ensure the license is enforceable and protects your interests not only in Georgia but also internationally if needed.

A proper license is the shield of your digital business. Protect your code and revenue with professional help.

Why Choose a Specialist on Legal.ge?

IT law requires a synthesis of technological and legal knowledge. Legal.ge gives you access to lawyers who understand code, APIs, open source, and cloud technologies. Our specialists create tailored solutions, not templates, fitting your specific product.

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