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Non Transferable Software License Template for India

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Key Requirements PROMPT example:

Non Transferable Software License

"I need a Non-Transferable Software License Agreement for a cloud-based accounting software that will be used by our financial services company across multiple office locations in India, with a subscription term starting from March 2025 and strict data security provisions."

Document background
The Non-Transferable Software License Agreement is essential for software companies and developers operating in India who wish to maintain strict control over their software distribution and usage. This document is particularly relevant when the licensor wants to ensure their software is used only by the original licensee without the possibility of redistribution or transfer. The agreement must comply with Indian legislation, particularly the Information Technology Act, 2000, and the Copyright Act, 1957, while addressing modern software licensing challenges. It typically includes detailed terms about usage rights, technical specifications, support services, and clear prohibitions on transfer or sublicensing. This type of agreement is commonly used for specialized software, enterprise applications, or when the software provider wants to maintain a direct relationship with each end user.
Suggested Sections

1. Parties: Identification of the Licensor and Licensee with full legal names and addresses

2. Background: Context of the agreement, brief description of the software, and purpose of the license

3. Definitions: Detailed definitions of technical terms, software components, and key concepts used in the agreement

4. Grant of License: Specific terms of the non-transferable license, including scope, permitted uses, and express prohibition on transfer

5. License Restrictions: Clear enumeration of prohibited activities, including transfer, sublicensing, reverse engineering, etc.

6. Term and Termination: Duration of the license, renewal terms, and circumstances for termination

7. License Fees: Payment terms, fee structure, and payment schedule

8. Intellectual Property Rights: Assertion of ownership rights and protection of IP

9. Warranties and Representations: Standard warranties regarding software functionality and IP rights

10. Limitation of Liability: Caps on liability and exclusions of certain types of damages

11. Confidentiality: Protection of confidential information exchanged during the license period

12. Technical Requirements: Minimum system requirements and technical specifications for software use

13. Support and Maintenance: Terms for technical support, updates, and maintenance services

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

Optional Sections

1. Third-Party Components: Required when the software includes third-party components, detailing additional terms and licenses

2. Data Protection: Necessary when software processes personal data, ensuring compliance with Indian data protection rules

3. Cloud Services: Required for software with cloud-based components, specifying service availability and data handling

4. Export Control: Needed when software may be accessed from outside India

5. Source Code Escrow: Optional provision for source code protection through escrow arrangements

6. Training and Implementation: Required when the license includes initial setup and training services

7. Audit Rights: Optional clause allowing licensor to audit licensee's compliance with license terms

Suggested Schedules

1. Schedule A - Software Description: Detailed technical specifications of the licensed software

2. Schedule B - License Fees: Detailed breakdown of license fees, payment schedule, and calculation method

3. Schedule C - Service Level Agreement: Specific metrics and standards for software performance and support

4. Schedule D - Technical Requirements: Detailed system requirements and compatible platforms

5. Schedule E - Support and Maintenance Terms: Detailed procedures for support requests and maintenance services

6. Appendix 1 - Authorized Users: List of authorized users or user categories when applicable

7. Appendix 2 - Security Requirements: Specific security protocols and requirements for software use

Authors

Alex Denne

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

Relevant legal definitions





































Clauses
































Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Professional Services

Retail

Insurance

Banking

Automotive

Pharmaceuticals

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Risk Management

Operations

Software Development

Contract Administration

Business Development

Relevant Roles

Chief Technology Officer

Legal Counsel

IT Director

Procurement Manager

Software Licensing Manager

Compliance Officer

Contract Administrator

Information Security Manager

Technology Risk Manager

Business Development Manager

IT Project Manager

Legal Operations Manager

Software Asset Manager

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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