Legal Question in Business Law in Iowa

Signing Software Licenses

Is it necessary to have a licensee sign a software licensing contract or can we rely on �if you use the software you agree to the above terms�? What are the rules regarding putting a licensing terms screen with an :�agree� checkbox before the software is used? Do these signing rules change if the license includes services such as customer support and update?


Asked on 1/19/06, 12:17 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

Re: Signing Software Licenses

End User Licensing Agreements (EULAs) have been found to be enforcible in several courts, and almost all of them rely on PrcCD v. Zeidenberg from the 7th Circuit which found that an on screen licensing agreement was a valid and binding contract. However, that should tell you that the design of the EULA is very important so as to navigate the shoals that await the unwary. If the product is a commercial one that is offered to discrete customers I think I might have one of their officers sign a written agreement with a liquidated damages clause.

Hope this helps-call and let's chat.

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Answered on 1/20/06, 10:07 am


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