Difference between EULA and a license [closed]

Question

When I sell software I've written I send the customer a End User License Agreement that I got from a draft template on the web (see link below). One large customer I recently worked with has contacted my as they say this is just a EULA and not a license. What is the difference?

http://www.developer-resource.com/sample-eula.htm

Thanks for the help. Jay

Answer 1

An End-User License Agreement (EULA) is a contract between the copyright holders and the user. It requires the user to agree, usually by clicking "I agree". Think of it like a contract: "if the user promises to do X and Y, I promise to grant you permission to use this software".

A license (especially open source licenses) do not require the user to agree to it. They strictly give the recipient of the software additional rights. Think of it like a declaration of additional permissions: "I grant you the permission to copy and modify this software".

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If you've ever installed an open source operating system like Debian, you'll notice that you never have to click "I agree", not even once. This is because the free and open source licenses of the software included in Debian automatically grant you the right to copy and use the software, you don't have to agree to do anything in exchange.

EULAs, on the other hand, do require you to agree first, which usually means you are giving up a right in exchange. They have been known to contain some pretty outrageous clauses (for example, Sony required users agree not to bring class-action suits to court against Sony). However, it is disputed whether EULAs are actually legally enforceable in all cases.

Answer 2

IANAL but in my opinion, the license would state the limitations of their ownership of their copy of the software. I think a EULA better describes the limitation of the proper use of the software and your liability or lack there of based on the use of the software.

I.E. a license won't say "don't use this to hack somebody" while a EULA would say "we're not responsible if you use this for malicious purposes." Likewise the EULA might not mention who in the company is allowed to use it, but a license can say things ranging from "5 developers in your company" or "any developer employed by you" or whatever limitations you want to apply.