A software license agreement is a legal document that stipulates several key conditions between a software company or developer and a user to allow use of the software.

These conditions are designed to protect the developer’s intellectual property rights and to limit claims against them for potential damage resulting from use of their software. In some cases, pricing and terms of payment may also be included, though this is often covered in a separate document. The primary purpose of the agreement, however, is to provide detailed ground rules for use of the software: Where the software may be installed and how many instances may be installed. How the software can be used. Whether the software may be copied, modified, or redistributed. Any copyrights that apply to the software. Ownership of the software—most often specifying that the provider retains all rights of ownership. Duration of the terms of the agreement. What constitutes correct usage of the software.