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In this day and age, chances are you’ve agreed to an End User Licence Agreement (EULA) before.
If you’ve downloaded any apps on your phone or installed programmes on your computer – then you may have clicked a tick box (that you may or may not have read). These are typically referred to as EULAs, and in 2025, they remain as relevant as ever.
Why Would You Need An EULA?
If you’ve developed an app or software as a service, you might think it’s enough to just have a SaaS Agreement in place. This can work if you’re selling your software directly to the market. However, with the growing diversity of end users and increasing digital risks in 2025, a bespoke EULA is essential to protect your intellectual property and ensure proper usage by every user.
When individual users (businesses, individuals, students and more) download and use your software for varied purposes, there are additional risks involved. A robust EULA ensures that every end user understands their obligations, thereby minimising liability and maintaining control over how your product is used.
There are two key scenarios that often arise:
Firstly, when a developer partners with another business to market and sell their software, it’s crucial that the end users adhere to clear terms of use. By having users agree to an EULA upon download, you set definitive guidelines on how your software should be used.
Secondly, within an enterprise where a business licences software for its employees, it isn’t sufficient to bind only the enterprise to your terms and conditions. To ensure that every individual user complies with the stipulated terms, a separate EULA for employees is necessary before they can access your software.
What’s In An EULA?
SaaS Agreements and EULAs often go hand in hand. If you already have a SaaS Agreement, ensure that your EULA is drafted consistently to prevent any potential conflicts. In 2025, it’s also important to regularly update your EULA to reflect changes in technology and regulatory requirements, particularly with respect to data privacy.
Some typical clauses found in EULAs include:
- Prohibiting copyright infringement: Depending on the nature of your software, if users can post content or share files, this clause restricts them from uploading any third-party material that might breach copyright laws.
- No reverse engineering: An EULA can explicitly prohibit reverse engineering of your software. This prevents users from deconstructing the binary code to access your original source code, thereby protecting your intellectual property and trade secrets.
- Terms of use for downloading, installing and using the software: This clause limits your liability in instances of user misuse, ensures proper installation procedures, and outlines responsibilities during periods when your software might be temporarily unavailable due to upgrades or maintenance.
- Termination: Should an end user breach the terms, this clause provides you with the right to terminate their access, thereby mitigating ongoing risks.
- Data usage and privacy compliance: With evolving privacy regulations, many EULAs now include clauses detailing how user data is collected, stored, and utilised. This ensures you comply with current privacy laws-see our Privacy Policy guidelines for more information.
How Can I Use An EULA?
EULAs can be presented in various forms and should be customised to suit your product. The two main types are:
- A shrink-wrap licence: If your software is distributed in physical packaging, the EULA often takes the form of a shrink-wrap licence, becoming effective as soon as the user removes the packaging.
- A click-wrap licence: More commonly, digital products employ a click-wrap licence, where users must click an “I agree” button before downloading or installing the software.
Need Help With An EULA?
As a software-powered law firm with an in-house development team, we understand the pivotal role that EULAs play in protecting your business and intellectual property in today’s digital environment.
In 2025, with rapid technological advancements and frequent regulatory updates, it’s crucial to periodically review and update your EULA to ensure it remains enforceable and compliant. If you’re considering modifying your existing EULA or drafting a new one, you might want to explore our Contract Review and Redrafting services for expert guidance.
It’s also important to remember that as your software evolves, so too should your legal protections. Regular updates to your EULA not only safeguard your product but also ensure that your users are well-informed about their rights and responsibilities. This proactive approach can save you from potential disputes down the line.
Whether you already have a SaaS Agreement in place or need tailored advice on protecting your software and intellectual property, our team is here to help. Feel free to get in touch at team@sprintlaw.com.au or call 1800 730 617 for a free consultation.
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