Template EULA

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What is an EULA?

EULA (End-User License Agreement) is also known as the Software License Agreement (SLA). It is a legal agreement between the manufacturer/producer/licensor of a software product and the end-user/purchaser/licensee. EULA comes with a software product, whether it is compatible with mobile phones, computers, or other gadgets.

An EULA spells out the terms of use and is usually displayed with the software installation dialogue asking users to accept those terms. It represents a disclaimer of the manufacturer’s liability for losses arising from the use of the software. An EULA is mostly used as a click-wrap agreement to permit the use of a software product after installation. And they often appear as a pop-up notification.

The contents of a typical EULA agreement would include:

  • Control over software product use
  • Non-transferability of user-rights
  • Limited reproduction and distribution
  • Disclosures on consumer rights
  • Participation in affiliate programs (if any).

When is an EULA required?

An EULA is required when end-users want to download, install, and use your software product. An EULA offers you legal protection and helps your users understand and accept the terms of use of your software product.

To establish the terms of use, these are some of the topics that you’ll need to cover in your EULA (but not limited to):

  • License grant
  • License termination
  • Usage restrictions
  • Intellectual property
  • Warranty/Disclaimer

Do I need an End User License Agreement?

As a software company, you need an End-User License Agreement to protect yourself and ensure that end-users of your product agree to the terms of its use. You can use this agreement to dictate how you want them to use your software. And it gives you some level of control over the use of your software.

You need an EULA so that you can specify the rights and limitations that apply to the use of your software. Though most people will tick 'I Accept' without even reading a single line of your EULA, you still need to have one to protect your intellectual property and limit future liability.

Is an EULA legally binding?

Yes, an EULA is a legally binding agreement, but the enforceability of an EULA largely depends on the legal jurisdiction and the court of dispute. And verdicts often vary from case to case depending on the construct and specific terms of the EULA in dispute.

In some other cases, the validity of an EULA depends on the length, readability, and the option to accept or reject the agreement. And this is why courts tend to enforce an EULA in the form of a click-wrap agreement.

Though the purchaser or user usually bears the risk, the EULA allows a software producer to escape liability in the event of a claim for damages or costs by the user(s). And it is similar to ToU or T&C agreements.

A valid EULA is expected to:

  • Have language easy to understand
  • Be easily accessible to users
  • Give users the option to accept or reject the EULA terms

How do I write an EULA?

Without a legal background, it would be difficult if not impossible to write your own EULA from scratch. To make things easier you can start with a template as a framework to create your EULA. You can use our free template to get started or you can create your own using our free generator. Our simple EULA template gives you a concise but standard EULA to edit & adapt to your needs.

You can download our free template in Microsoft Word (.doc), Adobe (.pdf), and copy on your Google Docs account or print an online copy directly from your browser.