This is an important part of contract negotiation. You can ask for certain parameters to be added around the vendors right to audit. It’s important to point out that when entering a new agreement with a vendor you can request that this section be made a lot clearer. This gives the vendor the right to audit the end user at anytime, with a review of your entire software estate for any installs or use of their software. At no point does the end user purchase the ‘software’. The end user purchases a limited, non-exclusive and non-transferable license to use the software. The vendor is simply giving the end user the right to use the software. It is extremely important to remember that the end user does not own the software in any form. The term ‘ownership’ is referenced throughout the EULA, but in many cases it may also have its own section. The ownership aspect is another important part that needs to be understood. If you do not agree to the licensing restrictions then you may not use the software. This section is pretty self explanatory, and the terminology used is relatively understandable. End users should never do anything that is not outlined in the license grant anyway, but this highlights that fact. Licensing restrictions highlight what you can and cannot do with the software. This is an important part of the EULA that needs be fully understood. Again, this backup may not be shared under any circumstances. The EULA continues to state whether the end user is permitted to create a backup copy of the software for disaster recovery purposes. This means that by accepting the EULA you agree not to sell, share, distribute or sublicense the software. One of the key vocabulary terms in this part of the EULA is the ‘non exclusive’ and ‘non-transferable’ aspect. Vendors highlight the terms of use, and whether it’s permitted for use within a commercial environment or whether it’s for personal use only. This tells you what the end users license rights are and highlights your restrictions when using the software. It may simply say ‘ by using this software you agree to the Terms & Conditions presented in the End User License Agreement’. EULA’s may be agreed to without the end user knowing. It is also known as the software license agreement in which the user obtains a license to use the software under the terms and conditions of the EULA provided to them.ĮULA’s are presented to the end user in either the install process or as a physical copy with a boxed copy of the software. The EULA is basically a legal contract between an end user and a vendor highlighting what they can and cannot do with the software they have just acquired. The EULA can also be known as a software license agreement. EULA stands for “End User License Agreement”.
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