What’s the meaning of EULA? Is an EULA the same as Terms of Use or Terms of Service (ToS)? When is an EULA needed? How to generate one? In this post, we answer these questions and show how you can easily prepare an End User License Agreement for your business, website or app.
EULA stands for an End User License Agreement (also called Software License Agreement (SLA), or Licensed Application End-User Agreement).
Generally speaking, an EULA is a legally binding agreement between the owner of a product (often software) and the end-user – more specifically a contract between the licensor of a product and the licensee.
Going into more details, it specifies the rights and restrictions that apply to the software, and it’s typically presented to users during the installation/set-up stage. Like other legal agreements, it is only valid if it’s actually agreed to.
End User License Agreements are important for protecting the rights of the business owner/licensor and critical for setting the rules of use and managing the expectations of the end-user.
Generally, the EULA will help you to set the conditions of your license agreement with the user – explain what they are and aren’t allowed to do with the software, the conditions under which their access might be limited or terminated, copyright provisions etc.
Some additional instances where an EULA might needed are where you:
Yes, somewhat. Terms of Use (also called Terms and Conditions and Terms of Service) generally govern the relationship between a business, its’ services and its’ users/consumers – this broad scope can include everything from copyright and licensing to consumer rights, to return policies and setting governing law.
An End User License Agreement operates in a similar way, but focusses mostly on the licensing relationship. The titles “Terms and Conditions”, “Terms of Use” and “EULA” mean the same thing in relation to software and apps and are often used interchangeably.
Although EULAs vary, common clauses for End User License Agreements are:
When writing a basic End User License Agreement, be sure to at least:
You can see how this all comes together in the EULA example text below.
Here’s a sample EULA template created with iubenda Terms and Conditions Generator:
Click on the button below to open the full agreement:
End User License AgreementThe solution to draft, update and maintain your Terms and Conditions. Optimised for eCommerce, marketplace, SaaS, apps & more.