End User License Agreement - EULA

The End User License Agreement - or EULA - is a legally binding contract between the developer or publisher of a software program (or application) and the purchaser of that software. However, unlike the purchase of goods or services, the EULA is, as its name implies, a license agreement. In other words, the purchaser does not own the software, they merely have a right to use it in accordance with the licence agreement.

During the install of package software, the purchaser is shown the contents of the EULA and is often required to scroll down through the EULA, at the bottom of which, one may Accept or Refuse the terms of the EULA. By enforcing the need to scroll through the EULA, a user would be unlikely to succeed in any action to deny acceptance of the terms of the EULA.

In some cases, the EULA is written on the outside of the packaging with the breaking of the seal to the CD, indicating acceptance of the EULA.

In all cases, the EULA is the contract which users ignore at their peril; and whilst most EULAs contains broadly similar clauses and restrictions, it is important to confirm these before committing your organisation.

Microsoft has helpfully provided detailed information about its own EULAs at www.microsoft.com/education/license/eula.asp.