But in the case of a SaaS agreement, the customer does not put software on a computer or copy it at all. The software is located on computers operated by the provider (perhaps in a third-party data center) and the customer usually only accesses it via the Internet. Without copies, copyright plays no role in the transaction, so the customer does not need a copyright license. On the contrary, the customer needs a simple promise: “For the duration of this agreement, the supplier will give the customer access to the system.” The reason for these different positions is that, in a SaaS model, the provider hosts the software application and controls the associated components for the provision of the software. However, in an on-premise model, the software is installed by the customer behind the customer`s firewall, where the customer controls the software and how it is used and operated in its systems. If so, use a term of use (ToS) to define general performance expectations and a termination clause, instead of “refund” or time extension clauses. In a SaaS model, customers gain access to software functionality based on the vendor`s standard specifications on how the vendor will provide services to all of its customers. As a result, providers generally do not offer an acceptance period to their customers to test services as soon as an agreement has been signed. Instead, vendors can offer customers a free trial license in which the customer must perform all the necessary tests to determine if the customer wants to proceed with the purchase. One of the first things to address in your software license agreement is the scope of the license. Often, the license should not be sublicensed, non-exclusive, and non-transferable.
If the license contains restrictions on the number of computers on which the software can be used or on the number of authorized users who can use the software as a whole, those restrictions must be taken into account as part of the license. This means that an EULA agreement is less appropriate, given that the end result of using EULA agreements is that a copy of your software is granted to the customer for use.. . . .