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Subscription License Agreement Template for United States

A Subscription License Agreement is a legal contract governed by U.S. law that establishes the terms and conditions under which a provider grants access to software or digital services on a subscription basis. This agreement outlines usage rights, payment terms, service levels, data protection obligations, and termination conditions. It incorporates relevant federal and state regulations, including digital commerce laws, privacy requirements, and consumer protection provisions.

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What is a Subscription License Agreement?

The Subscription License Agreement serves as the primary legal framework for software-as-a-service (SaaS) and recurring digital service arrangements in the United States. This document is essential when establishing ongoing relationships between service providers and subscribers, particularly in cloud-based or digital service contexts. It addresses critical aspects such as usage rights, service levels, data protection, payment terms, and compliance with federal and state regulations. The agreement is designed to protect both parties' interests while ensuring clarity in responsibilities and expectations throughout the subscription period.

What sections should be included in a Subscription License Agreement?

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. License Grant: Scope and nature of the subscription license, including usage rights and restrictions

5. Payment Terms: Subscription fees, payment schedule, invoicing, and related financial terms

6. Term and Termination: Duration of agreement, renewal terms, and termination conditions

7. Service Level Agreement: Performance standards, availability commitments, and support obligations

8. Intellectual Property Rights: Ownership of IP, rights granted, and protection of proprietary information

9. Confidentiality: Protection and handling of confidential information

10. Warranties and Disclaimers: Service warranties, disclaimers, and limitation of liability

11. Governing Law: Applicable law and jurisdiction for dispute resolution

What sections are optional to include in a Subscription License Agreement?

1. Data Protection: Privacy and data handling provisions, compliance with privacy laws

2. Professional Services: Terms for additional implementation, training, or consulting services

3. White Labeling: Terms for rebranding and reselling the software

4. Disaster Recovery: Business continuity and disaster recovery procedures

5. Insurance: Insurance requirements and coverage obligations

What schedules should be included in a Subscription License Agreement?

1. Schedule A - Service Description: Detailed description of the licensed services and functionality

2. Schedule B - Service Level Metrics: Specific performance metrics, measurement methods, and remedies

3. Schedule C - Price List: Detailed pricing structure, tiers, and optional add-ons

4. Schedule D - Data Processing Agreement: Detailed data handling procedures, security measures, and compliance obligations

5. Schedule E - Support Services: Details of technical support, maintenance, and upgrade procedures

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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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