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earlier in 4. So the grant includes the phrase single working location. If your software is to be restricted to a single machine, or to be used on a per-seat basis, you need to incorporate language limiting the scope of the license to the pricing scheme you have adopted. Ownership: Makes it perfectly clear that the license does not transfer any ownership of the product. Copies: Restricts making copies of the product to backup or archival purposes, and warns against spreading copies around in the public domain. No Disassembly: Prohibits the licensee from stealing your intellectual property by disassembling or decompiling your software. You cannot, of course, prevent someone from knocking off your product by reverse engineering, that is, building a clone with the same kinds of features and functions, just by looking at the screens and reports and the fields and tables in the database. Most products do not have algorithms or other proprietary routines that cannot be discerned merely by looking at the product from the outside. There s no mystery about an accounting system, for example, or a manufacturing system. This clause becomes more operative in a product like The Sleep Advisor, an expert system that identifies sleep problems based on a complex formula connecting the user s responses to an assessment identifying a list of sleep problems. In this case, there is value in the code that you would not want to have knocked off. Transfer: Allows the license to be transferred. Fielder s choice here. But if a company changes name or ownership or is bought out, the new owners will want to be able to carry on business using your product. So this will give them the option of transferring the license to the new entity. Termination: Specifies that you will terminate this license if they fail to comply with any of the license terms. And that they must destroy the software. To which they ll probably reply, Yeah. You and what army Which is what keeps the courts in business. As Is Warranty Statement: I love this part.
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1. Disclaimer: Wherein you make no claims about your software work-
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ing correctly. Or even working at all. Can you believe anyone actually agrees to this Would you buy a car that, according to the manufacturer, May not work correctly. May not work at all. Not guaranteed to run on any specific kind of road
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5 Legal Matters 2. Limitation of Liability: In which you state that, in light of the
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Disclaimer, should your user suffer any damages from the use of your software, you have no responsibility to pay for said damages. (Car manufacturer: We told you the car might not work right. If the brakes don t work and you run into a wall, don t come crying to us. )
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3. Use at Your Own Risk: In light of the first two paragraphs, you tell
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the user Should the Software prove defective, you assume the entire cost of all service, repair, or correction. Wow. Do you know of any other product or service that can get away with that Governing Law: Indicates the state where you do business or, if different, the state where your lawyer is licensed to practice. Consent to Jurisdiction, Venue, and Service: Dictates that should the user want to press any claim against you, they have to come to your town to do it. This doesn t stop them from filing a claim against you in their own hometown and forcing you to go there and ask for a change of venue. But it may slow them down a bit. Doesn t the foregoing make you want to go back and look at some of those licenses to see what you ve actually agreed to The primary purpose of a license, in my opinion, is not to provide fodder for a lawsuit. Most companies do not want to base any part of their business on an illegal copy of software. In my experience, any company caught with an illegal copy of my software couldn t get a check to me fast enough. On the other side of the table, if you find someone using an illegal copy of your software, you re probably not going to spend the time or money to pursue them in court. Since your damages are probably limited to the cost of the software, and you re probably not going to recover your attorney s fees, there s just not enough money involved. And most companies, if you sell them a defective product, don t have the time, energy, money, interest, or damages to come after you legally. They ll just get rid of you and your software. Almost all people are honest. Almost all play by the rules. The primary purpose of your license is to lay down the rules for using your software. So craft a license that is clear and thorough about your expectations for the use of your product. Then, of course, give it to your lawyer.
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