A License Agreement is a legal document by which the owner of a tangible or intangible product grants usage rights to another individual or company under specific situations. Usage rights are usually granted in exchange for payment of a royalty or licensing fee. In a License Agreement, the owner of the tangible or intangible product being licensed is the licensor, and the individual or company granted permission to use the product is the licensee.
If you have ever purchased computer software to use on your home or office computer, you are a party to a particular type of License Agreement referred to as an “End User License Agreement” (EULA). You do not own computer software purchased under the terms of such agreement. You are a licensee, and are paying for the right to use it as directed in the agreement. Some EULAs allow use only on a single computer; others allow company wide or unlimited usage.
When creating License Agreement forms, it is very important to use documents that clearly protect your rights, whether you are the licensee or the licensor. The best solution for creating a license agreement is to base your document on standard business legal forms that have been verified by a qualified legal professional. You can view sample license agreement forms and other types of business legal forms on RocketLawyer.com and try them for free.