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ARTICLE · 12 FEBRUARY 2013

A Practical Guide To Software License Agreements: Fees And Related Matters

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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Borden Ladner Gervais LLP

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Software license agreements generally require the customer to pay fees for the software license and related services, which fees are usually based upon the duration of the license and the manner in which the customer is allowed to use the software, together with applicable taxes and withholdings.

CanadaMedia, Telecoms, IT, Entertainment
Bradley Freedman
Bradley Freedman
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Software license agreements generally require the customer to pay fees for the software license and related services, which fees are usually based upon the duration of the license and the manner in which the customer is allowed to use the software, together with applicable taxes and withholdings. Customers should understand the total cost of ownership of the software throughout its expected life cycle.

KINDS OF FEES

  • Software License Fees: The fee for a software license generally reflects the value the customer will derive from using the licensed software, based upon the duration of the software license (perpetual or fixed term) and the manner in which the customer is allowed to use the software (e.g. the purposes for which the licensed software may be used and the number of permissible software installations and end users). Software license fees are usually payable in advance, on either a one-time basis (for a perpetual license) or a periodic basis (for a

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