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Software Distributor Agreement for Philippines

Software Distributor Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions under which a software company (licensor) grants distribution rights to a local distributor. The agreement covers essential aspects including territorial rights, pricing structures, intellectual property protection, and compliance with local regulations such as the Philippine Data Privacy Act and E-commerce Act. It defines the responsibilities of both parties, distribution territories, support obligations, and revenue-sharing arrangements while ensuring adherence to Philippine commercial and technology laws.

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What is a Software Distributor Agreement?

The Software Distributor Agreement is a crucial document for software companies seeking to expand their market presence in the Philippines through local distribution channels. This agreement is typically used when a software company wants to authorize a local entity to distribute, market, and sell their software products within specific Philippine territories. The document addresses key aspects required under Philippine law, including distribution rights, territorial restrictions, pricing mechanisms, and compliance with local regulations such as the Data Privacy Act and E-commerce Act. It's particularly important for foreign software companies entering the Philippine market, as it needs to balance international software licensing practices with local legal requirements while protecting both parties' interests. The agreement typically includes detailed provisions for technical support, marketing obligations, revenue sharing, and intellectual property protection.

What sections should be included in a Software Distributor Agreement?

1. Parties: Identification of the software owner/licensor and the appointed distributor

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

3. Definitions: Detailed definitions of technical terms, legal terms, and key concepts used throughout the agreement

4. Appointment and Territory: Scope of distributor appointment and defined geographic territory for distribution rights

5. Grant of Rights: Specific distribution rights granted, including any restrictions and limitations

6. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

7. Distributor Obligations: Key responsibilities including marketing, sales targets, customer support, and reporting requirements

8. Licensor Obligations: Software owner's commitments regarding software updates, support, and training

9. Intellectual Property Rights: Protection of software IP, usage of trademarks, and licensing terms

10. Pricing and Payment Terms: Distribution pricing structure, payment schedules, and financial arrangements

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Compliance with Philippine Data Privacy Act and data handling requirements

13. Warranties and Indemnities: Software warranties, performance guarantees, and indemnification provisions

14. Governing Law and Dispute Resolution: Application of Philippine law and dispute resolution mechanisms

What sections are optional to include in a Software Distributor Agreement?

1. Non-Competition: Restrictions on distributor's involvement with competing software products

2. Source Code Escrow: Arrangements for source code protection and access under specific conditions

3. Insurance: Required insurance coverage for distribution activities

4. Performance Guarantees: Specific performance metrics and consequences for not meeting targets

5. Sub-Distributors: Terms for appointment and management of sub-distributors

6. Marketing Requirements: Detailed marketing obligations and brand usage guidelines

7. Training and Certification: Requirements for distributor staff training and certification

8. Force Majeure: Provisions for handling unforeseen circumstances and acts of God

What schedules should be included in a Software Distributor Agreement?

1. Schedule 1: Software Description: Detailed technical specifications and features of the software

2. Schedule 2: Territory Map: Detailed description or map of authorized distribution territory

3. Schedule 3: Price List: Comprehensive pricing structure, including discounts and special rates

4. Schedule 4: Service Level Agreement: Support and maintenance service levels and response times

5. Schedule 5: Marketing Guidelines: Brand usage rules and marketing material specifications

6. Schedule 6: Performance Metrics: Detailed sales targets and performance measurement criteria

7. Schedule 7: Technical Requirements: Infrastructure and technical requirements for distribution

8. Appendix A: End User License Agreement: Standard EULA to be used with end customers

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

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















































Clauses









































Relevant Industries

Information Technology

Software Development

Technology Distribution

E-commerce

Digital Services

Telecommunications

Retail Technology

Enterprise Software

Cloud Services

System Integration

Relevant Teams

Legal

Sales

Business Development

Channel Management

Distribution Operations

Compliance

Technical Support

Partner Relations

Commercial Operations

Contract Administration

Relevant Roles

Chief Technology Officer

Sales Director

Commercial Director

Legal Counsel

Distribution Manager

Channel Partner Manager

Business Development Manager

Software Licensing Manager

Compliance Officer

Contract Manager

Partner Relations Manager

Regional Sales Manager

Technical Operations Manager

Software Distribution Coordinator

Chief Legal 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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