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ARTICLE · 23 FEBRUARY 2012

A Practical Guide To Software License Agreements: Term And Termination

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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Software licenses and associated services are usually time-limited and subject to early termination. Customers should understand the term of each software license and associated services and take reasonable precautions to properly exercise renewal rights and avoid early termination.

CanadaMedia, Telecoms, IT, Entertainment
Bradley Freedman
Bradley Freedman
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Software licenses and associated services are usually time-limited and subject to early termination. Customers should understand the term of each software license and associated services and take reasonable precautions to properly exercise renewal rights and avoid early termination.

Term

A software license agreement usually specifies the duration of the software license and of the vendor's associated services (e.g., maintenance and technical support). A software license can be time-limited or perpetual, and associated services can be available during the entire term of the software license or for a limited period.

Where the term of a software license or an associated service is time-limited, the software license agreement may provide for the renewal or extension of the term. A renewal or extension may be automatic (unless a party opts out), at a party's sole option, or require the agreement of both parties. Automatic or optional renewals and extensions are

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