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End User License Agreement

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§ 7.38 Form: Individual or Network Use Shrink-Wrap License Agreement

This is a contract between you, the end user (either an individual, or a legal entity such as a corporation), and Discs Corporation. By opening this sealed package you are agreeing to be bound by the terms of this agreement. If you do not agree to the terms of this agreement, promptly return this package unopened to the place you obtained them for a full refund.

1. Grant of License

(a) Single Computer. This Agreement permits you to use the copy of the enclosed product (the “Product”) on a single computer. Once you have run that portion of the Product called the “setup” or “install” program on your computer, you may use the Product on a different computer only if you first delete the files installed by the setup program from the first computer (if any). You may not copy the Product from the enclosed media to a computer hard disk or other permanent electronic storage device (except as occurs when you run the setup/install program or use other features of the Product on your single computer).

(b) Computer Network Use. If you wish to use the Product over a computer network, you may do so as follows: (i) you may install the setup/install program on any or all computers on your network, and (ii) you may make the Product available over your network either by a drive connected to a network server or by installing the entire Product on the hard disk of your network server, provided that (iii) you have a mechanism in place to restrict the number of concurrent users of the Product (i.e., the total number of users accessing the Product over the network at any one time) to the number of licenses you have purchased for the Product. Note that if you have multiple copies of the Product and you are counting such copies as licenses for your use of the Product over a computer network, you must archive such copies and not make any other use of them for as long as you are counting them as network copies.

2. Copyright

The Product, including any software, images, graphics, photographs, animation, video, audio, music, and text incorporated in the Product or included in any material accompanying the Product, is owned by Discs Corporation or its suppliers and is protected by United States copyright laws and international treaty provisions. The copying of the Product, any portion of the Product, or any of the printed materials accompanying the Product is strictly prohibited by such laws and treaty provisions.

3. Other Restrictions

You may not rent or lease the Product, but you may transfer the Product and accompanying written materials on a permanent basis to another end user provided you delete the setup files from your computer, and the recipient agrees to the terms of this Agreement. You may not reverse engineer, decompile, or disassemble the Product. Any transfer of the Product must include the most recent upgrade and all prior versions.

4. Limited Warranty

4.1. Performance and Term

Discs warrants that (a) the Product will perform substantially in accordance with the accompanying printed materials for a period of ninety (90) days from the date of receipt, and (b) any hardware accompanying the Product will be free from defects in materials and workmanship under normal use and service for a period of one (1) year from the date of receipt. Any implied warranties on the Product and hardware are limited to ninety (90) days and one (1) year, respectively. Some state jurisdictions do not allow limitations on duration of an implied warranty, so the above limitation may not apply to you.

4.2. Customer Remedies

Discs Corporation’s entire liability and your exclusive remedy shall be, at Discs Corporation’s option, either (a) return of the price paid or (b) repair or replacement of the Product or hardware that does not meet Discs Corporation’s Limited Warranty and that is returned to Discs Corporation with a copy of your receipt. The Limited Warranty is void if failure of the Product or hardware has resulted from accident, abuse, or misapplication. Any replacement Product will be warranted for the remainder of the original warranty period or thirty (30) days, whichever is longer. Outside the United States, neither these remedies nor any product support services offered by Discs Corporation are available without proof of purchase from an authorized non-U.S. source.

4.3. No Other Warranties

To the maximum extent permitted by applicable law, Discs Corporation disclaims all other warranties, either express or implied, including, but not limited to implied warranties of merchantability and fitness for a particular purpose, with respect to the Product, the accompanying written materials, and any accompanying hardware. This limited warranty gives you specific legal rights. You may have others, which vary from jurisdiction to jurisdiction.

4.4. No Liability for Consequential Damages

To the maximum extent permitted by applicable law, in no event shall Discs Corporation or its suppliers be liable for any damages whatsoever (including, without limitation, damages for loss of business profits, business interruption, loss of business information, or other pecuniary loss) arising out of the use or inability to use this Product, even if Discs Corporation has been advised of the possibility of such damages. Because some jurisdictions do not allow the exclusion or limitation of liability for consequential or incidental damages, the above limitation may not apply to you.

5. U.S. Government Restricted Rights

The Product and documentation are provided with RESTRICTED RIGHTS. Use, duplication, or disclosure by the Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFARS 252.227.7013 or subparagraphs (c)(1) and (2) of the Commercial Computer Software—Restricted Rights at 48 C.F.R. § 52.227-19, as applicable. Manufacturer is Discs Corporation, 200 Broadway, Jackson Hole, Wyoming 12345.

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What an End User License Agreement Is and Why It Matters

An End User License Agreement (EULA) is a legally binding contract that defines the rights, responsibilities, and permitted uses of software or digital products by the end user. It sets licensing scope, permitted installations, updates, limitations of liability, and termination conditions. EULAs also describe intellectual property ownership, export controls, warranty disclaimers, and permitted support channels. In many commercial and consumer contexts, a clearly drafted EULA reduces disputes, clarifies permitted use, and supports enforcement if unauthorized copying or redistribution occurs.

Why a Clear EULA Protects Your Organization

A concise EULA establishes legal boundaries for software use, limits liability exposure, and preserves intellectual property rights while setting customer expectations for updates, support, and permitted use.

Why a Clear EULA Protects Your Organization

Which Organizations and Roles Commonly Use an EULA

EULAs are used across product teams, legal departments, IT, and by companies that distribute software, firmware, or digital content.

  • Product and engineering teams that package releases and need consistent end-user terms across versions and channels.
  • Legal and compliance groups that require enforceable license terms and audit trails for software distribution.
  • Sales and customer success teams that manage licensing models, subscriptions, and permitted user counts.

Use an EULA whenever software is distributed to third parties, embedded in devices, or offered under subscription or trial terms.

Step-by-Step: Preparing and Executing an EULA

Follow these sequential steps for drafting, review, signature, and recordkeeping to reduce errors and improve enforceability.

  • 01
    Draft: Define license scope, limits, and IP ownership clearly.
  • 02
    Legal Review: Have counsel confirm enforceability and consumer disclosures.
  • 03
    Placement of Fields: Add signature, date, and initial fields in the final section.
  • 04
    Execution: Capture signatures with audit trail and retention.

How Electronic Execution Works for an EULA

Electronic signing follows a predictable flow when using compliant eSignature tools and preserves evidence of intent and attribution.

  • Upload: Save the final EULA as PDF or DOCX and upload to the signing platform.
  • Place Fields: Add signature, initials, and date fields where required.
  • Authenticate: Use email, SMS, or stronger methods like KBA for signer verification.
  • Archive: Store the signed copy plus audit trail for retention compliance.

Essential Clauses to Include in a Professional EULA

A robust EULA balances clear license language with consumer protection, warranty disclaimers, and operational detail to support enforcement and reduce litigation risk.

Grant of License

Specify license type, permitted installations, user counts, device limits, and any territorial or functional restrictions to avoid ambiguity.

Restrictions

List prohibited actions such as reverse engineering, distribution, sublicensing, and removal of copyright notices.

Intellectual Property

Affirm licensor ownership of code and associated IP; clarify that licensee receives no ownership rights by use.

Termination

Define breach events, cure periods, automatic termination conditions, and post‑termination obligations including data deletion.

Warranty and Liability

Include warranty disclaimers, limitation of liability caps, and disclaimers of consequential damages consistent with applicable law.

Updates and Support

Describe update policy, automatic updates, and whether patches are included or sold separately under support agreements.

Security and Compliance Features to Note

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trails: Detailed event logs and timestamps
Certifications: SOC 2 Type II; ISO 27001
HIPAA Support: BAA available for protected health information
21 CFR Part 11: Controls for FDA-regulated records
ESIGN / UETA: Compliant with federal and state e-sign laws

Key Legal Risks from an Incorrect or Missing EULA

Unenforceability: Improper consent undermines enforcement
Consumer Claims: Missing disclosures may trigger statutory remedies
Data Breach: Insufficient security triggers regulatory penalties
Contract Ambiguity: Vague terms invite litigation
IP Loss: Poor assignment language risks ownership disputes
Compliance Fines: Sector rules can impose monetary penalties

Common Preparation Mistakes to Avoid

  • Failing to define license scope clearly, which leads to disputes over permitted use and sublicensing.
  • Using boilerplate without tailoring warranty or liability clauses to actual risk and regulatory obligations.
  • Not obtaining explicit electronic consent or required consumer disclosures under ESIGN for consumer-facing licenses.
  • Neglecting to record and retain the audit trail that proves signer identity and execution details.

Typical EULA Digital Workflow Settings

Configure these fields when preparing the EULA for electronic execution to match your compliance and audit needs.

Field Configuration
Signer Authentication Email link | SMS code | KBA for higher assurance
Signature Type Simple e-signature or PKI-based digital signature
Document Format PDF/A preferred for long-term archival
Retention Keep signed PDF + audit trail for retention period

Technical Considerations for Electronic Execution

Choose a signing platform that supports required authentication, audit trails, and export formats for legal review.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File Types: PDF, DOCX, HTML
  • Authentication: Email, SMS, SSO, KBA

Typical Timeframes and Notice Periods in an EULA

EULAs often include explicit timelines for effectiveness, renewal, termination notice, and update notices to users.

Effective Date:

Date entered governs when terms take effect

Renewal Cycle:

State term length and auto-renewal mechanics

Update Notice:

Thirty days' notice commonly used for material changes

Termination Notice:

Specify cure period, often 10–30 days

Record Retention:

Retain signed records per retention policy

Key Milestones from Draft to Enforceability

Track these stages to ensure the EULA is reviewed, executed, and preserved with a complete evidence trail.

01

Draft Finalization

Counsel and product finalize operative clauses and definitions.

02

Internal Approval

Legal and business approvals recorded prior to release.

03

Electronic Execution

Signatures captured with audit trail for each party.

04

Archival

Signed PDF and metadata archived to meet retention rules.

How an EULA Differs from a Terms of Service

Compare the primary distinctions so you place the correct obligations and remedies in the right document.

Criteria End User License Agreement Terms of Service
Purpose license rights platform rules
Parties licensor and licensee service provider and user
Scope software use broader website interactions
Signature often signed often clickwrap or browsewrap

Comparing eSignature Vendor Pricing and Basic Features

Basic pricing and feature availability for common eSignature vendors. signNow appears first per vendor listings and pricing noted by plan where available.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA required) Varies by plan Varies by plan Varies by plan Varies by plan
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-World Examples of EULA Use

These brief examples illustrate how organizations apply EULAs in different operational contexts.

Optica Ventures

A software vendor standardizes a single EULA across products to reduce review time

  • Reduced review cycles by consolidating versions
  • The company now enforces updates centrally and decreases legal bottlenecks in product releases.

Fertility Centers

A healthcare provider layered a HIPAA addendum onto its EULA to permit secure patient portal use

  • Added BAA and audit controls
  • This ensured compliance with privacy rules while preserving patient access to digital services.

Practical Tips for Creating Enforceable EULAs

Apply these drafting and execution practices to reduce ambiguity and strengthen legal enforceability.

Use Plain Language
Draft terms in clear, concise language and define key terms in a definitions section to avoid interpretive disputes.
Document Consent
Capture explicit eConsent where consumer-facing, and preserve the audit trail that records intent, attribution, and timestamp.
Tailor Warranties
Adjust warranty disclaimers and liability caps to reflect product risk, regulatory obligations, and market expectations.
Maintain Version Control
Number and date agreements and preserve prior versions to resolve disputes about which terms were in effect.

Frequently Asked Questions About End User License Agreements

Answers address enforceability, electronic signatures, consumer disclosures, and retention to help you avoid common pitfalls.


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