This clause controls whether you can sell the software to other customers, and under what conditions. Without clear reseller rights, you might buy a license thinking you own it, only to discover you cannot legally resell it—meaning you're stuck with the software if your business plan changes. UK and US law generally treats software as licensed (not owned), so the contract must explicitly grant reseller permission. This matters because reseller rights directly affect your business model and exit options. If the clause is silent or restrictive, you lose revenue opportunities.
Ask the vendor explicitly: "Can I resell this to my customers, and do I need their written permission each time?" Push for a blanket reseller license if you plan to offer the software as part of your service. If the vendor refuses, negotiate a buyout clause so you can exit the contract without penalty if reselling becomes critical to your business. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause controls whether you can sell the software to other customers, and under what conditions.
Why should I care about this clause?
Without clear reseller rights, you might buy a license thinking you own it, only to discover you cannot legally resell it—meaning you're stuck with the software if your business plan changes.
What are my options?
UK and US law generally treats software as licensed (not owned), so the contract must explicitly grant reseller permission.
How does this affect small businesses?
This matters because reseller rights directly affect your business model and exit options.