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What is EULA? Why is it used?

Ever had a sincere desire to protect what you own or created? You may also expect what you created to be distributed in a just and upright manner. In some cases, the distribution of your product can also lead to people using it for gains through unfair means. That’s where EULA (End-user license agreement) comes into play.

EULA acts as a contract between the licensors and purchasers. They establish the purchaser’s right to use the software while protecting the software licensor’s product and rights. It also informs the end user about the rules and regulations that they have to abide.

It is now generally seen in digital copies and also presented to users as a ‘click-through’ option. Users are now compelled to accept EULA’s during the installation process, to be able to use the software.

These agreements are usually presented after the user has made a payment for the product, so they mainly work as a ‘contract of adhesion’.

Agreements (in physical or digital form) contained inside inaccessible packages until purchase are usually known as shrink-wrap licenses. There are also click-wrap licenses which are presented in the click to move ahead format.

Why is EULA used?

Protection of a distributors rights may be defined as the primary reason for these to be present when products are sold. EULA can also help expand the extent of a company’s control over a product.

If the product causes any problems for the user due to their fault, they might come calling for the company to help fix the issue. In this case, a user can end up blaming the company for the loss of valuable information. EULA in this situation can help prevent losses by showing what a user had agreed to when deciding to use the product.

They are also essential in protecting the patents that the distributor may own or have permission to use.

EULA: Good or Bad?

EULA’s are documents which can be called a double-edged sword. With the existence of ‘free software licenses’  for similar software solutions, a EULA can be deemed extraneous.

While EULA can protect both parties, they can also cause them harm. If a company provides a EULA before the purchase is made, and a document that is concise while explaining all details in a simple language rather than using legal mumbo-jumbo, it can benefit all parties and be for the good rather than the bad.

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