EULA

What is an end-user license agreement (EULA)?

An end-user license agreement is a legally binding agreement between a software developer and the user of the software they created. These agreements describe the rights and obligations that the developer and user have to each other and clearly define the ways users can utilize the software.

EULAs effectively give the user (sometimes referred to as a licensee) the ability to use the software while maintaining the software provider’s ownership rights to the program.

When individuals purchase software, they typically only purchase a license to use the software, not the rights to the whole program. This means the software developer, sometimes referred to as a licensor, retains ownership of the program regardless of the number of people who buy licenses. These agreements also protect the developer’s intellectual property rights.

FAQs

Is it safe to accept an EULA?

Most EULAs are considered safe if they’re issued by a reputable or well-known software developer. However, it’s important to review the software license agreement before agreeing to it so you understand the terms and conditions the developer specified in the agreement. If you end up violating any of those terms, the developer could legally revoke the license or, in some cases, may be able to take legal action against you.

Does all software have an EULA?

No. Some software, especially open-source programs (ones that allow anyone to make changes to the software) or free programs available from certain software vendors, may not have an EULA in place. These agreements are most common for software that people buy and install on a device. 

What happens if you don’t accept an EULA?

If you don’t accept the EULA, you typically won’t be able to use the software. Many developers require users to accept the EULA to use the program. Since the EULA protects the rights of both the developer and the end user, it’s a good idea to accept it after reviewing the agreement in detail. If you’re installing software for a business, consider letting an attorney review the agreement to make sure it doesn’t put your business at risk.

Is everyone using a program with an EULA subject to the agreement?

If a user accepts the EULA and starts using the program, they are subject to the agreement. This is true whether they’re using the program personally or are installing the program on a computer at a non-profit organization they work at or volunteer for.