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Source Code License Agreement for Hong Kong

Source Code License Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions under which one party (the licensor) grants another party (the licensee) the right to access, use, and potentially modify source code. The agreement covers essential aspects including intellectual property rights, usage limitations, confidentiality obligations, warranties, and technical specifications. It incorporates Hong Kong's intellectual property and contract law requirements while providing a framework for protecting the licensor's proprietary rights and defining the licensee's permitted uses of the source code.

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What is a Source Code License Agreement?

The Source Code License Agreement is a critical legal instrument used when a software owner needs to provide another party with access to their software's source code while maintaining control over its use and distribution. This agreement is particularly relevant in Hong Kong's dynamic technology sector, where it must comply with local intellectual property laws, including the Copyright Ordinance (Cap. 528) and related legislation. The document typically covers license scope, modification rights, confidentiality provisions, and commercial terms. It's commonly used in software development partnerships, technology transfers, or situations requiring code access for integration or customization purposes. The agreement balances the licensor's need to protect their intellectual property with the licensee's requirements for code access and usage rights.

What sections should be included in a Source Code License Agreement?

1. Parties: Identification of licensor and licensee with full legal names and addresses

2. Background: Context of the agreement, nature of the source code, and purpose of the license

3. Definitions: Detailed definitions of technical terms, source code components, and key concepts

4. License Grant: Scope of license, usage rights, and any restrictions on use of the source code

5. Intellectual Property Rights: Ownership of IP, protection measures, and handling of improvements

6. License Fee and Payment Terms: Financial terms, payment schedule, and any recurring fees

7. Confidentiality: Protection of source code and other confidential information

8. Warranties and Representations: Warranties regarding ownership, non-infringement, and code quality

9. Term and Termination: Duration, renewal terms, and termination circumstances

10. Post-Termination Obligations: Requirements after agreement ends, including return or destruction of code

11. General Provisions: Standard legal clauses including governing law, notices, and assignment

What sections are optional to include in a Source Code License Agreement?

1. Modification Rights: Terms governing licensee's right to modify the source code - include if modifications are permitted

2. Sublicensing Rights: Terms for sublicensing to third parties - include if sublicensing is allowed

3. Technical Support and Maintenance: Support services, updates, and maintenance terms - include if technical support is provided

4. Geographic Restrictions: Territorial limitations on usage - include if license is geographically restricted

5. Export Control: Export compliance requirements - include if international usage is involved

6. Performance Requirements: Minimum performance standards - include if specific performance metrics apply

7. Escrow Arrangements: Source code escrow terms - include if code is held in escrow

8. Audit Rights: Rights to audit licensee's use - include for high-value licenses

What schedules should be included in a Source Code License Agreement?

1. Schedule 1 - Source Code Description: Detailed technical description of the licensed source code components

2. Schedule 2 - License Fee Schedule: Detailed breakdown of license fees and payment terms

3. Schedule 3 - Technical Specifications: Technical requirements and specifications for the source code

4. Schedule 4 - Acceptance Testing: Testing procedures and acceptance criteria

5. Schedule 5 - Support Services: Details of technical support and maintenance services

6. Appendix A - Permitted Uses: Specific authorized uses and implementations of the source code

7. Appendix B - Security Requirements: Security standards and requirements for code handling

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions













































Clauses































Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare Technology

E-commerce

Telecommunications

Manufacturing Technology

Educational Technology

Professional Services

Research and Development

Relevant Teams

Legal

Information Technology

Software Development

Procurement

Information Security

Compliance

Research & Development

Commercial Operations

Technical Operations

Intellectual Property

Relevant Roles

Chief Technology Officer

Software Development Manager

Legal Counsel

IP Rights Manager

Chief Information Officer

Software Licensing Manager

Contract Manager

Technology Procurement Manager

Software Engineer

Systems Architect

Commercial Director

Technology Transfer Officer

Information Security Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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