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What is an End User License Agreement?

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When you click on those “I agree” or “I accept”, you find online, you are dealing with a EULA. This type of license agreement is also found in app stores like Apple Store and Google Playstore. Developers who have built or currently building products for the Apple Store should give special attention to this post as the Apple Store has a default End User License Agreement, leaving most developers confused as to whether the default one is sufficient or they need to draft theirs.

EULA is an acronym for End User License Agreement, a legal document that governs the rights and obligations of a software owner and the user who has been granted the license to use the software. The two main aim the EULA seeks to achieve is to adequately protect the software owner’s intellectual property, while limiting liabilities that could arise from use by customers or third parties.

Similar to a SaaS agreement, the software developer gives limited access to the software to the user, however, ownership in the software is not transferred. End User License Agreements usually detail the rights granted by the software developer to the user with specific details on the boundaries within which the user can use the software. One popular restriction is granting access to only one user per account, in order to combat common occurrences where several people team up to pay for and use one account.

Accepting an End User License Agreement is mandatory before access to the software is allowed. The only other option is to not accept and thereby forfeit access to the software. Once EULA is accepted, is it binding? We find out in our next post.


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