License Agreement

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(End User License Agreement) The legal agreement between the manufacturer and purchaser of software that stipulates the terms of usage. Pronounced "you-lah," the EULA is displayed with the installation dialog and requires the user to "Accept" or "Agree" to continue. Prior to downloadable software, the EULA was printed on or within the packaging and stated that removing the shrinkwrap from the box or discs was automatic acceptance.

The EULA generally disclaims all liabilities for loss of data in the user's computer when the software is running. It generally guarantees nothing except that a defective disc will be replaced if there was physical media. EULAs are so inclusive that if the software computed 2+2=5, the disclaimer would likely apply. Whether that would hold up in court is another matter.

If this sounds like a license to make inferior software, the first EULAs were written when operating systems were much less stable and prone to crashing, and even the largest companies were unable to test their software with everything else that users might be running at the same time. However, the issue of liability has never really been changed, and the customer takes the risks.

Does Anyone Read It?
Users rarely read the EULA because it is often long and full of legalese. In 2005, PC Pitstop wanted to know if anyone really does read it, and at the end of the EULA offered a reward if the user emailed them. After five months and 3,000 downloads, somebody did and received a check for USD $1,000.

However, the fact that people do not read the agreement is how spyware has been legally distributed to users. Some EULAs explicitly state that additional software will be installed that reports the user's surfing habits or performs some other unwanted function. See drive-by install, concurrent use license and per seat license.

Would You Read It?
This EULA came via iTunes to the iPhone and requests agreement to 55 screenfuls of text. Most likely, everyone clicked Agree, trusting that Apple is an ethical company that means no harm but takes reasonable measures to protect itself.
Copyright © 1981-2019 by The Computer Language Company Inc. All Rights reserved. THIS DEFINITION IS FOR PERSONAL USE ONLY. All other reproduction is strictly prohibited without permission from the publisher.
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

License Agreement


an agreement according to which one party (the licenser) gives the right to use an invention or other technical advance (license) to another party (the licensee), who pays an appropriate compensation. License agreements deal with technical concepts that are recognized as inventions according to the law of the country of citizenship of the license purchaser. They may also involve other technical advances, including production secrets (”know-how”).

The substantive features of a license agreement are the grant of the right to use the object of the agreement and the non-material nature of this object, which is defined in terms of specific characteristics (as a scientific and technical achievement). The scope of the rights given in the license agreement depends on the type of license. The conditions of the license agreement may establish the territory where the license applies (part of a country, one or several countries), the form in which the object of the license is used (including production and/or sale of articles, the employment of a certain technology), the quantitative scope of the license, and the term (usually from five to ten years). The license agreement also includes the conditions for transmitting technical documentation to the license purchaser and rendering him technical assistance by the exchange of specialists. These conditions also provide for the delivery of machinery and equipment prototypes, the mutual exchange of information between the parties on technical improvements made in the design, the participation of the parties in defending the rights of the license owner against infringement of these rights by third parties, and the procedure for resolving disputes involving the license agreement. The license agreement also determines the amount of license compensation, the manner of determining the amount, and the method of payment.

In the USSR, license agreements are used in trade relations with foreign organizations and are considered one of the forms of foreign trade transactions. Such agreements may be concluded only by the foreign trade organizations, that is, by the specialized all-Union association Litsenzintorg and other foreign trade associations.

Outside the Soviet Union, license agreements are also used by capitalist and some socialist countries in relations among organizations within the particular country.

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
The court looked at four provisions from the licensing agreement to make its decision:
Finally, the multi-year licensing agreement with Nordisk Film provides Viasat Broadcasting with exclusive first run and library title movies on pay-TV for Sweden, Norway, Denmark and Finland.
The company executive vice president of sales, Anna Houssels, said, 'This licensing agreement launches our relationship with one of the premier gaming companies in the world.
The Uniform Computer Information Transactions Act was an attempt to develop a body of contract law surrounding software licensing agreements, said John Lobert, senior vice president of state government affairs for the Alliance of American Insurers.
"The licensing agreement was predicated on Your Health Inc.'s compliance with its initial payment obligations," Phillips added.
It has contended for some time that the patent was invalid and has refused to sign a licensing agreement with PE Biosystems, while continuing to market its PCR-related products.
Therefore, the building owner should be aware that, while utilizing the term licensing agreement may offer psychological comfort, legally, it will be treated much like a lease.
Hayes advises inventors to take precautionary measures even under licensing agreements. "Before you enter a licensing agreement, research how much litigation the company is involved in and how it treats its employees," he says.
Consider, for example, a licensing agreement with a three-year term that is automatically renewed on a year-to-year basis unless one party terminates the agreement in writing.
The companies currently have a licensing agreement allowing General Tire to manufacture and market the Hoosier performance radial street tire line.
Neos Therapeutics (NEOS) announced that it has entered into a confidential settlement and licensing agreement with Teva (TEVA) to resolve all ongoing litigation involving Neos' patents protecting its Cotempla XR-ODT extended-release orally disintegrating tablets and Teva's abbreviated new drug application, or ANDA, filed with the FDA to market a generic version of that product.
Global Banking News-August 6, 2018-Neovasc signs collaboration and licensing agreement with Penn to advance Tiara programme for mitral valve disease

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