If you own software, then chances are you have enlisted a third party to sell or license it. Hiring a third-party seller is an efficient way to get your product out there, however, a number of considerations need to be made for your protection.
What is a software reseller agreement?
A Software Reseller Agreement is a legally binding agreement between the third-party seller and yourself. It will cover:
- Your liability from the actions of the third party
- Secure your revenue streams
- Protect your ownership
- Set out relevant limitations
- Clarify the rights and responsibilities of all parties involved
Software reseller agreements are drafted to be unique to the business’ specific needs. Therefore, it is not strictly limited to what it can and cannot include.
Why Do I Need A Software Reseller Agreement?
Having a third-party sell your product has many benefits including a wider customer base and exposure. The downside is that you have limited control of the seller’s actions, so it’s important that your liabilities are protected. Furthermore, it’s essential to distinguish the finances, roles, and ownership regarding your product.
Having clear lines and boundaries ensures that all parties are aware of their expected conduct. Failure to communicate and have this in a legally binding agreement can lead to disputes.
Our team at Clearpoint Legal can draft your software reseller agreement, keeping your best interests in mind.
We can assist in drafting a Software Reseller Agreement in accordance with the requirements of your business. If you would like a consultation on your options going forward, give us a call.