+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad Ironclad Platform Contract Management Ironclad CLM Software Manage your contracts across the entire lifecycle Workflow Designer Editor Repository, Reporting Clickwrap. Ironclad Clickwrap Enforceable online agreements Embedded Contracts ‘Terms Management Public Learn More join Ironclad Live rkflow Tronelad Al Integrations Implementation at's New. ‘Al-powered contract management Speed up contracts and operate more effectively with Ironclad AI Finance htpssironcladapp.comfournalcontracts/subscription-icense-agreement/ RSVP Now Cut your contract processing time by 80% and get business done faster. Lotus show you how &} v8+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad ‘Customers Resources Community, ‘Learn and grow with our community Demo Video Library ‘r-demand demo videos to help you isan more sbout ona The Jounal ‘tiles and on-demand videos on all things contac Academy. ‘Training & learning resources for Ironclad customers Contract Management FAQ vihing you need to know to manag. How to Choose a CLM the full contract lifecycle ‘A buyer's guide with steps, tps, & more Company Careers ‘About Us Toggle Menu What Is a Subscription License Agreement? A subscription license agreement—or SLA for short—is an agreement between the manufacturer of a product and the consum ‘who wishes to use that product. These agreements exist to both protect proprietary software from abuse and prevent fraud. Th often stipulate how the product may be used, how new authorized users may be established, and whether the product may be ‘modified by any party other than the manufacturer Subscription agreements are increasingly common, especially in the information technology sector, but in other areas as well. Effective contract management is a must when dealing with these complex agreements. Most SLAs are standard agreements t every customer will sign with little modification other than party names and dates, Click-to-sign software like elickwrap htpssironcladapp.comfournalcontracts/subscriptionicense-agreement/ RSVP Now+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad RSVP Now What is a subscription license agreement? A subscription license agreement is an agreement between your company and a customer to use the software or product you the rights to. It allows the customer to use the product in the way you want them to and with any limitations you wish to establish. SLAs detail how a product may be used and whether the subscription may be accessed by other parties, They can ex include details about installation and the technical requirements necessary to run the software, ‘Some companies may still use a perpetual license, which is a one-time upfront payment for software without further cost, othe than possible technical support. However, subscription services for everything from employee management software to streaming serviees are increasingly common. These services create a regular flow of income for your business with customers who pay on a monthly or annual basis, These arrangements require legal documentation to protect your company’s rights and ensure continued revenue. Examples of subscription license agreements SLAs are especially common for software companies who want to sell their product to customers, Instead of a one-time sale with perpetual rights, a subscription agreement grants a business access to software so long as they continue paying for it in regular intervals. For example, a company with HR management software may offer their services for a certain monthly fee which continues until the consumer wishes to end the contract. Other industries that may use subscription license agreements include, but are not limited to: + Media streaming services + Accounting software companies + Educational resource technologies + Web hosting services + Social media sites. The purpose of a subscription license agreement SLAs protect your company and your product from abuse. Customers are not given unfettered access to the software simply because they pay for the service. The subscription license agreement grants them certain rights to use the product while limit their ability to abuse that right. Affcr all of the effort and resources you put into developing this product, you want to ensure y: protect your revenue-gencrating abilitcs for a long time. Other reasons to use a subscription license agreement include: + Preventing theft of your software + Permitting licensure of the software without sale + Allowing you to disclaim or limit warranties Limiting liability Allowing you to terminate use at any time or on certain conditions. When do I need a subscription license agreement? ‘You need ntubseriptionlcente agrectnt any tna you watt allow custorers to use your produc, assure they pty you regularly and not lth eusocor a perpetual ight Yo the product or softwar, Subsritions give you bet: contol of how your product is used and for how long. And when managed correctly, they increase revenue and provide consistency. As the subscription model for technology continues to increase in popularity, your company needs to stay on top of the inerea volume of contracts and complexity of these agreements. Digital contracting software allows you to streamline your process. Parts of a subscription license agreement htpssironcladapp.comfournalcontracts/subscriptionicense-agreement/ ae+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad RSVP Now Party identification ‘The contract should outline the parties” information, such as their address, company name, company representative, contact information, and service of process information, Digital contracting ereates autofill sections for this information that may be cataloged and managed effortlessly. Party identification is key to the enforcement of a subscription license agreement, Length of subscription The SLA should outline how long the agreement lasts. Many last until one party terminates the agreement with a certain amot of notice, such as 30 days. Others are limited to a specifi period—a year, for example—with the option to extend. How your company wants to handle this is up to you, but it must be clearly outlined in the agreement, Payment for the license The contract should specify the cost of the license, including the amount of money paid for each recurring period, It should al identify when those amounts must be paid, ie. yearly or monthly. This could also include details about maintenance fees, technical support, or other potential costs and how they are calculated. Non-exclusivity clause You likely want to allow other customers to use your software. The subscription license agreement should include a section th tells the customer the contract is non-exclusive and you may also license this product to other companies or individuals. This, significantly protects your revenue stream, Non-transferal lity clause ‘You likely want to maintain control of your product and not permit it to be transferred by the customer. A non-transferability clause prohibits or limits to whom the customer may transfer this license. It also protects your rights to your valuable intellect property. Reservation of rights ‘The subscription license agreement should specify that you retain rights to the software even after execution of the agreement including: + Possession of the software ‘The name or trademark ‘The copyright Distribution rights Intellectual property rights, Modification The SLA should determine whether you will permit modification to the product, In many subscriptions, you will forbid any ‘modification by the customer to the code or other aspects of the product, With other subscriptions, you may wish to allow cer ‘modifications while limiting others, In either case, the agreement should be clear about what modification rights the customer has, Breach of contract provisions ‘The subscription license agreement will contain multiple provisions about what occurs if the customer breaches the contract, This may include: + Governing law and jurisdiction + Terms of termination + Liquidated damages provisions hitpssironcladapp.comjournallcontracis/subscriptonicense-a 408+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad RSVP Now Subscription license agreements are complicated legal documents that, when improperly managed, arc hard to track and enfor For many companies, these SLAs are high-volume contracts that bog down their sales teams because of the time it takes to negotiate and sign the subscription agreement. Instead, this process should be fast, easy, and consistent to lel your department focus on new customers—anot time-consuming contractual issues, ‘These agreements also require in-depth tracking of payment schedules and termination dates. Advanced contract lifecycle management tools let you track this information effectively to avoid these limitations. How to create a subscription license agreement You can create a subscription license agreement by using emplatized agreements to save time and effort. A form agreement Ie you handle high-volume subscription agreements with ease while affording you the power to modify agreements to fit specifi ‘business arrangements. It gives you fillable fields that the software tracks and organizes to make it easy to identify a particula contract, Managing subscription license agreements ‘Managing SLAs with outdated software can be difficult and confusing. Your company wants many customers to sign up for t service, Tracking each customer can be incredibly difficult when using unsophisticated methods like spreadsheets to track eac agreement. Instead, contract data reporting gives you powerful insights into your agreements and specific details important to your busine These details may include: + Monthly payment information + Length of term for subscription + Terms and conditions of the agreement + Party information + Automation and template suggestions + Contract data metrics Why subscription license agreements can be time-consuming and hard to keep track of SLAs are complex documents with many aspects to track. This includes not only the party information but the payment featur for the subscription. This may differ from customer to customer, but effective software can track these differences and make them easy to utilize. Automating workflows for subscription license agreements focus on more important aspects of your business. Why subscription license agreements are hard to manage Companies that use unsophisticated contract management tools find subscription agreements hard to track. They are complex documents with variable end and payment dates. Enforcing agreements can be challenging unless you are using advanced software to manage your SLAs. The solution to your subscription license agreement needs Digital contracting with Ironclad gives you the solutions you need to manage your subscription license agreements. Our soft empowers you to self-service contracts and manage important data metries using tools like: htpssironcladapp.comfournalcontracts/subscription-icense-agreement/ 5+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad RSVP Now + Conuracs aaa reposnory, + Workflow Designer tool + Integration with Salesforce, DocuSign, and other partners Why use digital contract management for subscription license agreements? ‘Subscription license agreements need effective contract management to ensure they are profitable and successful for your business. Because of their periodic nature, these agreements can set your company up for long-term revenue generation, These periodic payments can be hard to track and collect with antiquated contract management tools and processes. Revenue may be lost and your product could be at risk of abuse without proper management. Try a free demo of Ironclad now to start automating your subscription license agreements Table of contents What is a subscription license agreement? Examples of subscription license agreements ‘The purpose of a subscription license agreement ‘When do I need a subscription license agreement? Parts ofa subscription license agreement Limitations of a subscription license agreement How to create a subscription license agreement ‘The solution to your subscription license agreement needs ‘Why use digital contract management for subscription license agreements? + Contracts and clauses Keep track of all your contract data with Repository Lear how to capture and secure your agreements, answer questions instantly, le ‘new opportunities. srage contract data to reduce risk, and disco htpssironcladapp.comfournalcontracts/subscription-icense-agreement/ oe+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad RSVP Now Learn and grow with Ironclad Community. Ironclad, hitpssironcladapp.comjournallcontracis/subscriptonicense-a 78+7108(2028, 1753 Whats a Subscription License Agreement? | ronclad Company About Us Careers Community Blog Press Legal ‘Terms of Servic Privacy Plicy lnonelad DPA Cookies CA Privacy Notice Do Not Sell ot Share My Personal Information Accessibility Statement Helpful Content (Clickwrap Agreements LOL : wi Contract Automation How to Choose a CLM Contract Review AI RSVP Now Ironclad provides self-help services at your specific direction. We are not a law firm or a substitute for an attomey or law firm. Communications between you and Ironclad are protected by our Privacy Policy, but not by the attorney-client privilege or as work product. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms, or strategies. 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