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What is an EULA or End User Licence Agreement?

August 4, 2022   Philip EvangelouRaphaella Revis

An end user licence agreement (EULA) is a type of software licence agreement to protect the software through terms of use.

Who is an end user?

An end user is the entity which the software is licenced to (by the software developer or publisher), and is commonly referred to as a customer. The end user can be a client of a company, a company itself or its employees (in some cases, both).

What are the benefits of an EULA? (Terms of Use)

Fundamentally, an EULA protects the software from being copied or reverse engineered, copyright infringements, or intellectual property breaches by having specific terms of use. These terms of use are not limited to the actual usage of the software, but also terms surround installation and even initially downloading.

An EULA can also be used alongside another software licence type that a developer or publisher can have with a company. If used this way, there can be additional safeguard against employee software misuse.

What are the benefits of an EULA? (End User Action)

An end user might attempt to bring a legal claim against the developer/publisher, in the event that there may be bugs or other alleged issues (that at times can relate to misuse); having an EULA protects the developer should this occur.

Acceptance of EULA

An end user can accept the licence agreement either virtually (click-wrap licence) or physically (shrink-wrap licence) depending on the product type.

Click-Wrap Licence → Once the software is being downloaded on the device, a terms and conditions page usually appears (which are the terms of use/EULA). The user cannot proceed to download and properly install the software without accepting the terms and consequently the licence.

Shrink-Wrap licence → This type of licence is used when the software is presented in a physical item such as on a DVD or hard drive, which is packaged either in shrink-wrap itself or regular packaging. Once the packaging is removed, the user accepts the licence automatically. 

What’s Next?

It is important for developers/publishers to be aware of EULA’s and how they can be used to protect their software from infringement or breaches. For more information or assistance, get in touch with our team via the contact form or by calling 1300 337 997.

About Philip Evangelou

phillipPhil is a director at OpenLegal. He has over 16 years experience working in private practice and in-house counsel in Sydney and London, giving him expertise in employment law, IP, finance, leases, dispute resolution, insurance and contracts.

About Raphaella Revis

Raphaella RevisRaphaella is a legal intern at OpenLegal and is currently a second year student studying Bachelor of Law and Science in Information Technology at UTS. Her interests are legal tech, contracts and IP.