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Software SSO License Agreement

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Software SSO License Agreement

Parties

This Software SSO License Agreement ("Agreement") is entered into by and between:

Recitals

WHEREAS, Licensor is the owner or authorized distributor of a proprietary single sign-on software platform and related components and documentation (the "Software"); and

WHEREAS, Licensee desires to obtain, and Licensor desires to grant, a limited license to deploy and use the Software solely for Licensee's internal authentication and identity federation needs, subject to the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend for this Agreement to define the scope of rights, payment obligations, confidentiality protections and the respective duties of the parties.

Grant of License

Subject to full payment of fees and compliance with this Agreement, Licensor hereby grants to Licensee a non-exclusive, non-transferable, limited license to install and use the Software for single sign-on (SSO) authentication for Licensee's internal users and authorized third parties, in accordance with the permitted user count and usage limits set forth in this Agreement.

Scope of Work

The parties agree that Licensor will deliver the Software, onboarding assistance, and configuration services necessary to enable SSO integration as described below. Licensee accepts that any additional integrations or custom development beyond the described scope will be subject to separate written agreement and additional fees.

Payment Terms

License fees, implementation fees, and any recurring subscription fees are due in accordance with the terms below. All amounts are payable in lawful currency and are non-refundable unless expressly stated.

Licensor will invoice Licensee according to the payment schedule. Amounts not paid when due shall accrue interest at the rate specified above or, if no rate is specified, at the maximum rate permitted by law. Licensee is responsible for all taxes (other than taxes based on Licensor's net income).

Support and Maintenance

Licensor will provide software updates and commercially reasonable technical support as described in the Scope of Work or an attached support addendum. Emergency support response times and service levels, if applicable, shall be set forth in the Scope of Work.

Term and Termination

This Agreement shall commence on and, unless earlier terminated in accordance with this Agreement, shall continue until .

Either party may terminate this Agreement for material breach if the breaching party fails to cure the breach within days after written notice. Either party may terminate for insolvency, bankruptcy, or cessation of operations upon written notice.

Upon termination, Licensee shall cease use of the Software, return or securely destroy all confidential materials of Licensor and pay all outstanding fees through the effective date of termination. Provisions that by their nature survive termination shall continue in effect.

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information disclosed by the other party that is marked confidential or would reasonably be considered confidential under the circumstances ("Confidential Information"). Confidential Information shall be used only for performance of this Agreement. Confidentiality obligations shall survive for years following termination.

Exceptions: Confidential Information does not include information that is (a) publicly known through no fault of the receiving party, (b) rightfully received from a third party without restriction, or (c) independently developed by the receiving party without use of the disclosing party's Confidential Information.

Intellectual Property and Restrictions

Licensor retains all right, title and interest in and to the Software and any derivative works, including all intellectual property rights. Licensee shall not: (a) reproduce or distribute the Software except as permitted by this Agreement; (b) decompile, reverse engineer or otherwise attempt to derive source code from the Software except to the extent expressly permitted by applicable law; or (c) sublicense, transfer or assign the license except as expressly permitted in writing by Licensor.

Indemnification and Limitation of Liability

Each party shall indemnify the other for third-party claims arising from breach of representations, willful misconduct or gross negligence. Licensor will defend Licensee against any claim that the Software, as delivered, infringes a third-party patent or copyright and will indemnify for final judgments, subject to Licensor's control of the defense and to Licensee's cooperation. EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY UNDER THIS AGREEMENT EXCEED THE FEES PAID BY LICENSEE TO LICENSOR IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of without regard to its choice-of-law rules. The parties submit to the exclusive jurisdiction of the courts located in the chosen jurisdiction for resolution of disputes arising under this Agreement.

Entire Agreement; Amendments

This Agreement, including all exhibits and appendices, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications. No amendment or modification shall be effective unless in writing and signed by authorized representatives of both parties.

Notice

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as either party may designate by notice in accordance with this provision.

Execution

The parties below represent that they have authority to enter into this Agreement on behalf of the party for which they sign.

Licensor (Print Name):

By:

Date:

Licensee (Print Name):

By:

Date:

Enter text✕

What a Software SSO License Agreement Is

A Software SSO License Agreement is a written contract that grants rights to integrate single sign-on (SSO) capabilities with a software product. It defines the parties, licensed functionality, authentication methods, user provisioning, data access, security obligations, fees, term, and termination. The agreement clarifies responsibilities for identity providers, outlines acceptable authentication protocols (SAML, OIDC), and allocates liability for security incidents. It also sets expectations for onboarding, support, and compliance with applicable laws such as privacy statutes and healthcare or financial regulations where relevant.

Why this Agreement Matters for Software and Identity Providers

A clear Software SSO License Agreement reduces integration ambiguity, limits operational and security risks, and preserves contractual remedies if authentication or data access fails. It defines technical interfaces, service levels, and compliance responsibilities so both licensor and licensee can implement SSO without disputes or unexpected liabilities.

Why this Agreement Matters for Software and Identity Providers

Who Typically Prepares and Signs This Agreement

Organizations that routinely use or provide identity services prepare this agreement before integrating SSO into production environments.

  • Software vendors and SaaS providers managing authentication, access control, and user provisioning across customer tenants.
  • Enterprise IT and security teams seeking standardized SSO onboards for employees and contractors.
  • Identity providers (IdPs), integrators, and channel partners negotiating licensing and support terms for SSO features.

Legal, security, and product stakeholders should review terms jointly to ensure alignment on technical controls, data handling, and liability allocation.

Primary Signatories and Their Roles

Chief Technology Officer

Typically signs for technical acceptance and integration commitments. Responsible for technical SLAs, authentication standards, and coordinating IdP configuration during onboarding; may delegate execution authority to senior IT management.

General Counsel

Reviews legal terms, liability caps, indemnities, and data processing clauses. Ensures the agreement aligns with corporate policies, compliance obligations, and any required consumer disclosures under ESIGN or state privacy laws.

Security and Compliance Essentials to Include

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Tamper-evident logs and timestamps
Certifications: SOC 2 Type II; ISO 27001
HIPAA: BAA required for PHI
21 CFR Part 11: Compliant options available
Access Controls: Role-based and SAML assertions

Step-by-Step: Preparing and Executing the Agreement

Follow these practical steps to prepare, review, and sign a Software SSO License Agreement with minimal friction.

  • 01
    Draft Core Terms: Identify parties, license scope, and authentication protocols.
  • 02
    Assign Technical Specs: Document SSO endpoints, assertions, attribute mapping, and SCIM/LDAP provisioning.
  • 03
    Review Compliance: Confirm HIPAA, PCI, or other regulatory obligations and data flows.
  • 04
    Execute and Onboard: Obtain signatures and complete IdP/SP configuration for production.

Typical eSignature Vendor Pricing and Features

Compare common plan and compliance criteria for signing SSO license agreements; signNow is listed first per vendor alignment and available plan structures.

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 trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common legal, technical, and compliance questions when preparing or signing a Software SSO License Agreement.


Need help? Contact support

Key Clauses to Include in a Professional Agreement

A complete Software SSO License Agreement contains technical, commercial, and legal clauses that allocate risk and enable reliable integration.

Grant of License

Specify permitted use, license scope, sublicensing rights, and whether the license is exclusive, nonexclusive, perpetual, or term-limited; tie scope to user counts or environments.

SSO Integration Terms

Define supported protocols (SAML, OIDC), endpoints, attribute mappings, SCIM provisioning behavior, and acceptance testing criteria for production rollout.

Authentication Responsibilities

Allocate responsibility for identity proofing, MFA, session handling, and revoked credentials; state which party manages IdP configuration and user lifecycle.

Fees and Billing

Document license fees, invoicing frequency, overage rates for additional users, payment terms, and consequences for late payment or disputed charges.

Data Security and Privacy

Include security obligations, breach notification timelines, encryption requirements, and compliance with HIPAA, PCI, or applicable privacy statutes.

Term and Termination

State term length, renewal mechanics, termination for convenience or cause, transition assistance, and post-termination data disposition.

Potential Legal and Operational Risks

Invalid Signature: Enforceability challenges
Data Breach Liability: Regulatory fines and damages
Breach of License: Injunctions or damages
Tax Reporting: Withholding or reporting errors
HIPAA Noncompliance: Civil penalties and notices
Indemnity Exposure: Unlimited liability risk

Common Preparation and Negotiation Pitfalls

  • Vague scope language that omits which SSO flows, attributes, or environments are covered, leading to disputes during implementation and extra integration costs.
  • Failing to define authentication strength or responsibility for MFA, which can expose the parties to security incidents and unclear remediation obligations.
  • Missing vendor provisioning details, such as SCIM endpoints or manual provisioning expectations, causing delays and inconsistent user access during rollout.
  • Omitting liability caps, indemnity carve-outs, or clear breach notice windows, which can create disproportionate financial exposure after an incident.

Real-World Examples of SSO Licensing in Use

These case summaries show how organizations use SSO license terms to streamline onboarding and protect data during integrations.

Optica Ventures — COO

The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

  • Integration reduced onboarding friction and support tickets.
  • By documenting SSO responsibilities and testing acceptance criteria up front, Optica improved user access reliability and shortened time-to-production.

Tech Data — CEO

Tech Data uses airSlate SignNow to improve our internal and external customer service while increasing our speed to revenue.

  • Standardized agreements enabled bulk onboarding.
  • Clear license metrics and automated provisioning reduced manual steps, lowered error rates, and accelerated contract-to-activation timelines.

How the eSigning and Onboarding Workflow Usually Works

A typical workflow moves from authoring to signed agreement and then to technical onboarding for SSO configuration.

  • Author Document: Draft license with SSO technical appendices included.
  • Send for Signature: Distribute via eSignature platform or secure link.
  • Sign and Record: Signers authenticate and audit trail is captured.
  • Onboard IdP: Complete IdP/SP configuration and acceptance tests.

Key Digital Settings for Online Completion

Configure these workflow settings when preparing the agreement for electronic routing and signature.

Field Configuration
SSO Provider Specify IdP name and endpoints for SAML/OIDC
Authentication Method Choose email OTP, SMS, or SAML assertion
User Provisioning Enable SCIM or manual provisioning flags
Audit Trail Capture IP, timestamp, and signer authentication

Platform Capabilities and Integrations to Consider

Verify platform support for required integrations, document formats, and authentication modes before finalizing the agreement.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File Formats: PDF, DOCX, HTML, Excel
  • Authentication Options: SAML, OIDC, SSO, 2FA

Choose a platform that supports required APIs, has audit trails, offers BAA where needed, and can export signed records in industry-standard formats for long-term retention.

Typical Timing and Notice Periods to Build Into the Agreement

Include reasonable deadlines and notice periods for onboarding, renewals, and dispute resolution to manage expectations and avoid service interruptions.

Effective Date:

Agreement takes effect on the signed Effective Date.

Onboarding Window:

Allow 30 calendar days for initial IdP/SP configuration and testing.

Renewal Notice:

Require 60–90 days written notice for nonrenewal or amendment.

Termination Notice:

Typically 30 days' notice for convenience, longer for breaches.

Payment Terms:

Invoices due within 30 days unless otherwise agreed.

Practical Tips for Accurate and Efficient Completion

Follow these best practices to reduce negotiation cycles and technical delays when executing SSO license agreements.

Use a Standard Template
Start with a vetted template that includes technical appendices for SSO, predefined indemnities, and a clear fee schedule; this reduces custom review time and legal costs.
Define Acceptance Criteria
Include objective tests for SSO validation (e.g., successful SAML assertions across sample users) and record sign-off responsibilities to prevent ambiguity during handoff.
Limit Liability Proportionally
Negotiate liability caps tied to fees or insurance limits and carve-outs for willful misconduct to balance risk and commercial viability.
Document Data Flows
Attach a data flow exhibit showing what identity attributes are shared, retention timelines, and deletion procedures to support privacy and audit requirements.
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