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No, as a customer or user, you don't need a separate license to use Software as a Service (SaaS). Instead of buying a license, you usually pay a monthly or yearly subscription fee to access the software online. The subscription includes the right to use the software and often comes with updates and customer support.
Most IT contract drafters know the difference between a software license agreement and a technology services contract. In a license, the customer gets rights to copy and use software, while in a services contract, the customer gets a service, like tech support or IT consulting.
?A Software License Agreement is a contract that allows a licensee to use software, but not own it. The software maker keeps some rights that the licensee doesn't get, like continuing to sell the software to others and granting the licensee permission to use the software on a lone computer.
The steps for making a license agreement are as follows: Download a template for a licensing agreement. Choose your role as the licensor or licensee. Define the license(s) in the agreement. Decide whether the license is exclusive or not. Settle the matter of fees and payment schedule. Add a renewal date and rules.
In a SaaS model, the fees are usually paid on a recurring basis by way of a 'subscription' model and for a specific term. The price for such software is usually paid upfront and in full, in a software license model.
Terms and conditions are specifically made for providing access to services. Unlike EULAs, they establish how the service will operate and revolve around the general agreement between you and the end-user. These contracts also set clear expectations for user behavior, while EULAs typically don't.
Non-exclusivity clause, non-transferability provision, rights clause, modification clause, breach of contract clause, limitation of liability clause, and governing law clause are crucial clauses that every software license should include.
The notable differences in a SaaS agreement relative to a traditional software license are: Not a one-time purchase price but an ongoing subscription. The software is not installed locally but is rather made available online as a service.