Software licenses vary significantly by transaction and product. Sales of off-the-shelf product are supported by shrink-wrap and "click-to-accept" licensing formats. Large systems are often supported by complex licensing arrangements that are intensely negotiated by the parties. Regardless of the format, transaction type and product cost, there are several key issues common to all software licensing transactions. One of these issues is the scope of licensing rights and related restrictions such as hardware, office location and purpose of use. A second issue is the definition of the product (e.g. object code, source code, modules). Product acceptance terms are often a very important issue, particularly for complex systems. Warranty provisions are critical as well as implementation schedules, payment terms and confidentiality provisions. Your approach to negotiating these issues will depend upon your position in the transaction as either licensor or licensee.
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