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Software license agreement template

License installed or self-hosted software to a business customer: who may use it and how many, what they may not do with it, updates and support, fees, and the limits of each side's responsibility.

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Who signs

  • Licensor (you)
  • Licensee

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Software License Agreement

This agreement is made on 24 October 2026 between Quarry Labs Ltd (the "Licensor") and Northfield Engineering GmbH (the "Licensee").

1. Licence

The Licensor grants the Licensee a non-exclusive, non-transferable licence to use Quarry CAD Validator, version 4, and its documentation (the "Software") for installation on the licensee's own servers and use by the licensee's employees for its internal engineering work, for three years from the agreement date, renewable by agreement.

2. Users

The Software may be used by up to 50 named users. Each user account belongs to one person; a named user may be reassigned when someone leaves, but accounts may not be shared.

3. Restrictions

The Licensee will not: copy the Software except for reasonable backups; modify, reverse engineer or decompile it except as the law expressly permits; sell, rent, sublicense or lend it; remove ownership notices; or use it to build a competing product.

4. Ownership

The Licensor owns the Software and all intellectual property in it. Open-source components included in the Software are licensed under their own terms, which are listed in the documentation.

5. Fees

The Licensee will pay EUR 36,000 a year, invoiced annually in advance. Invoices are due within 30 days. Fees exclude taxes.

6. Support and updates

The Licensor will provide email support on business days from 9:00 to 17:00 CET, with a first response within one business day, and all minor and major versions released during the licence term.

7. Warranty

The Licensor warrants that for 90 days from delivery the Software will perform materially as described in its documentation. If it does not, the Licensor will fix it or, if it cannot, refund the fees for the affected period. Otherwise the Software is provided as is, to the extent the law allows.

8. Liability

Neither party is liable for indirect or consequential loss, or loss of profit or data. Each party's total liability under this agreement is limited to the fees paid in the 12 months before the claim. These limits do not apply to breaches of section 3, or to anything that cannot be limited by law.

9. Ending the licence

Either party may end this agreement by written notice if the other materially breaches it and does not fix the breach within 30 days. When it ends, the Licensee will stop using the Software and delete all copies.

10. Governing law

This agreement is governed by the law of Ireland.

Signatures

For the Licensor: Signature · Licensor Date: Date · Licensor Name: Name · Licensor

For the Licensee: Signature · Licensee Date: Date · Licensee Name: Name · Licensee

These templates are general starting points, not legal advice. Laws differ between countries and states: check that a template suits your situation, or ask a lawyer, before you rely on it.

About the Software license agreement template

A software license agreement grants a customer the right to use software that remains the developer's property. It is the right document for installed and self-hosted software, desktop tools and on-premise systems; for software delivered as an online service, a subscription agreement is usually a better fit.

This template sets the scope of use, here internal business use on the customer's own servers by a fixed number of named users, and the usual restrictions: no reverse engineering except as the law allows, no reselling, no use to build a competing product. It includes support and updates during the term, a short warranty that the software performs as documented, and a cap on liability tied to the fees.

Open-source components are licensed on their own terms, and the template says so; list them in the documentation. If the customer needs the source code held in escrow in case the developer fails, add an escrow clause and an agreement with an escrow agent.

Signers
2
Signing fields placed
6
Details to fill in
13

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Used in

Questions

Does the customer own the software?

No. The customer receives a licence to use it within the stated scope. Ownership, including all intellectual property, stays with the licensor.

What is a named user?

A specific individual authorised to use the software. Named users can be reassigned when people leave, but not shared at the same time, as section 2 states.

Is this suitable for SaaS?

Not as written. Software delivered online needs terms on availability, data and hosting, which this template does not cover. Use a subscription agreement with an SLA instead.

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