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ARTICLE · 08 NOVEMBER 2023

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Software As A Service (SaaS) vs Software Licensing

Software as a Service (SaaS) agreements and software license agreements are both legal contracts that govern the use of software, but they have distinct differences in terms of their scope...

SwitzerlandIntellectual Property

Software as a Service (SaaS) agreements and software license agreements are both legal contracts that govern the use of software, but they have distinct differences in terms of their scope, terms, and how software is provided to users. Here are the main differences between these two types of agreements:

1. Delivery Model:

SaaS Agreement: In a SaaS agreement, the software is not installed on the user's local device or server. Instead, it is hosted and operated by the provider on their servers, and users access it over the internet. Users typically pay a subscription fee for ongoing access to the software.

Software License Agreement: A software license agreement allows users to install and use the software on their own local devices or servers. Users typically purchase a license for the software, which grants them the right to use it under certain terms and conditions.

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