Friday, January 27, 2012


As I am running out of regular subjects to post I decided to start doing posts on software. The differences between licensing software versus purchasing a good or service stems from the difference in intellectual property rights. With goods you buy and own them, With software you have the rights it use it. I wrote a post called “Differences between tangible property and intellectual property that highlights some of the differences.

Just like purchases of goods or services where there is a variety of templates and terms depending upon what you are purchasing, software has a variety of templates and terms that are based upon what is being licensed and how it is being licensed. For example a software license for a standard software product may be different in a number of aspects than a license for software that is licensed in conjunction with the purchase of a piece of capital equipment that needs the software to operate, The needs of the parties are different and the risks are different..

To start to blog about software I decided to first post a checklist of the types of terms that a buyer who will be negotiating terms for the “licensee” would be looking for in either drafting a license agreement or in reviewing a software developer’s (the “licensor”) standard template.

In future posts I will explain each of those focusing on terms that are unique to licensing software.If a term is common with one that’s used with the purchase of goods or services, I’ll refer the readers to the existing post.

1 comment:

  1. I very much look forward to learning about this from your blog!

    I'm actually working on a project to use software to help people negotiate licensing contracts. It's called Ridacto (, and it aims to use artificial intelligence to help attorneys and business professionals create more bulletproof contracts. Your suggestions on this blog have been super helpful, and I appreciate your sharing them and look forward to the posts in this series!