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Software License Subscription

Software License Subscription Template for South Africa

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Key Requirements PROMPT example:

Software License Subscription

"I need a Software License Subscription agreement for our cloud-based HR management software being licensed to enterprise clients in South Africa, with strong POPIA compliance provisions and multi-tenant hosting requirements, planned to launch in March 2025."

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Document background
This Software License Subscription agreement template is designed for use in the South African market, where software-as-a-service arrangements are increasingly common across various business sectors. The document serves as a comprehensive framework for establishing subscription-based software licensing relationships, incorporating requirements from South African legislation including POPIA, the Consumer Protection Act, and the Electronic Communications and Transactions Act. It is particularly suited for situations where software is provided on a recurring subscription basis rather than through perpetual licensing, and includes provisions for service levels, data protection, and regular updates. The agreement reflects modern business practices while ensuring compliance with South African legal requirements and business norms.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including registration details and addresses

2. Background: Context of the agreement and brief description of the software solution being licensed

3. Definitions: Detailed definitions of terms used throughout the agreement

4. License Grant: Scope, nature, and limitations of the software license being granted

5. Subscription Terms: Duration, renewal, and termination conditions of the subscription

6. Fees and Payment: Pricing, payment terms, billing cycles, and related financial obligations

7. Service Levels: Performance standards, availability commitments, and support services

8. User Obligations: Licensee's responsibilities, acceptable use policies, and restrictions

9. Data Protection: POPIA compliance measures, data handling, and privacy protection commitments

10. Intellectual Property: IP ownership, rights protection, and infringement procedures

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Disclaimers: Software performance warranties and limitation of warranties

13. Limitation of Liability: Caps on liability and exclusions of certain types of damages

14. Termination: Grounds for termination, termination procedures, and post-termination obligations

15. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Third-Party Integrations: Terms governing integration with third-party software or services, used when the software interfaces with other platforms

2. Professional Services: Terms for additional implementation, training, or consulting services, included when professional services are part of the offering

3. Disaster Recovery: Detailed disaster recovery and business continuity provisions, required for critical enterprise applications

4. Export Control: Compliance with export control regulations, needed when software may be accessed across international borders

5. Source Code Escrow: Terms for source code escrow arrangements, included for enterprise clients requiring business continuity assurance

6. Multi-tenant Services: Specific provisions for multi-tenant environments, needed when software is provided in a shared infrastructure

7. Audit Rights: Terms allowing for usage audits and compliance verification, included for licenses with usage-based pricing

Suggested Schedules

1. Schedule A - Software Description: Detailed description of the licensed software, including modules and features

2. Schedule B - Service Level Agreement: Detailed service levels, support terms, and performance metrics

3. Schedule C - Pricing and Payment Terms: Detailed fee structure, payment schedules, and pricing tiers

4. Schedule D - Technical Requirements: Minimum system requirements and technical specifications

5. Schedule E - Support and Maintenance: Detailed support services, maintenance windows, and escalation procedures

6. Schedule F - Data Processing Agreement: Detailed terms for POPIA compliance and data processing obligations

7. Appendix 1 - Authorized Users: Definition and limitations of authorized users and access rights

8. Appendix 2 - Security Requirements: Security standards, protocols, and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Tests
Affiliate
Agreement
API
Authorized Users
Business Day
Confidential Information
Data Protection Laws
Documentation
Effective Date
Fees
Force Majeure Event
Initial Term
Intellectual Property Rights
Licensed Software
Maintenance Services
Operator
Personal Information
Processing
Professional Services
Renewal Term
Responsible Party
Service Credits
Service Levels
Software Updates
Subscription Period
Support Services
System Requirements
Term
Territory
Third-Party Software
User Access Credentials
User Data
VAT
Virus
Working Hours
Relevant Industries

Information Technology

Financial Services

Healthcare

Retail

Manufacturing

Professional Services

Education

Telecommunications

Government and Public Sector

Mining and Resources

Insurance

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Finance

Risk Management

Information Security

Vendor Management

Commercial Operations

Data Protection

Relevant Roles

Chief Technology Officer

Legal Counsel

Procurement Manager

IT Director

Compliance Officer

Software License Manager

Contract Administrator

Information Security Officer

Risk Manager

Commercial Director

Chief Information Officer

Chief Financial Officer

Technology Procurement Specialist

Vendor Management Officer

Data Protection Officer

Industries
Consumer Protection Act 68 of 2008: Governs consumer rights, fair business practices, and terms of service. Particularly relevant for software subscriptions regarding pricing transparency, fair terms, and consumer rights to cancel services.
Electronic Communications and Transactions Act 25 of 2002: Regulates electronic transactions and communications, including the formation and validity of online contracts, electronic signatures, and the legal framework for e-commerce.
Protection of Personal Information Act (POPIA) 4 of 2013: South Africa's data protection law that regulates how personal information must be processed, stored, and protected. Critical for software services that collect or process user data.
Copyright Act 98 of 1978: Protects intellectual property rights in software, including source code, user interface, and documentation. Essential for defining license scope and restrictions.
Competition Act 89 of 1998: Ensures fair competition and prevents anti-competitive practices. Relevant for licensing terms, pricing structures, and market restrictions.
Exchange Control Regulations: Governs cross-border financial transactions and may affect payment terms and international licensing arrangements.
Value Added Tax Act 89 of 1991: Regulates VAT implications for software subscriptions, particularly important for pricing and invoicing terms.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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