Free End User Licence Agreement (EULA) Template for Software Products

Licence Grant and Software Usage Terms

The EULA must start by defining what type of licence the user is being granted. Is it a perpetual licence, subscription-based, or a time-limited licence? The agreement should detail how many devices the licence can be used on, whether the software can be installed in multiple environments, and any geographic or usage limits. This section sets the foundation of your licensing model and helps prevent misuse or ambiguous interpretation.

Permitted and Prohibited Uses of the Software

This section explains how users may or may not interact with the software. It should explicitly ban reverse engineering, disassembly, sublicensing, copying, selling, or modifying the software without written permission. You can also restrict use to non-commercial or personal use unless otherwise specified. The clearer the language, the more defensible your terms are under Canadian contract law.

Intellectual Property Ownership and Rights

This clause confirms that the software and all associated IP remain the exclusive property of the licensor. Users are only granted rights to use the software — not to claim ownership, distribution rights, or derivative works. If third-party libraries or components are used, their licences must be respected and clearly mentioned.

Warranty Disclaimer and Limitation of Liability

Limit your liability for how users use (or misuse) your software. Common language includes "as-is" disclaimers and a limitation of damages to the cost paid for the software or service. This protects you from financial exposure in the event of user complaints, bugs, or data loss. Make sure this aligns with your actual risk exposure and is enforceable under Canadian consumer laws.

Termination and Licence Revocation Conditions

Every EULA should outline how the agreement can be terminated — automatically upon breach of terms, or after notice from the provider. This includes misuse of the licence, failure to pay (if applicable), or violation of legal restrictions. Explain whether the user must delete the software and how revocation will be enforced post-termination.

Governing Law and Jurisdiction Clause

State which province or territory's laws govern the agreement. For Canadian businesses, this might be Ontario, British Columbia, or Quebec. Clarify that disputes will be handled in those courts and that Canadian law governs the contract's enforceability. This clause is critical for legal predictability and jurisdiction control.

A Legally Sound EULA Can Protect Your Software and Reduce Risk

A clear EULA protects your company from unauthorized use, liability claims, and intellectual property theft. It also reinforces user accountability by setting usage boundaries and legal remedies. Especially in Canada, where digital privacy laws are strong, your EULA should define how users interact with your product and what legal terms they must accept before use.

Key Clauses Included in This EULA Template

• Licence grant and usage rights
• Restrictions on copying, reverse engineering, and redistribution
• Ownership of software and intellectual property
• Disclaimer of warranties and limitation of liability
• Termination rights and grounds for revocation of licence
• Jurisdiction and governing law (Canada-specific)
• User acceptance and enforcement terms