This clause defines exactly what you're allowed to do with the software you're paying for. It specifies whether you can use it on one computer or many, whether you can modify it, and whether you can share it with others. This matters because without clear permission, you could accidentally break the law by using software in ways the owner didn't intend—for example, using a single-user license on 10 computers is copyright infringement. In the UK and US, software is automatically protected by copyright law, so you only have the rights the contract explicitly gives you.
Read this clause very carefully and make sure it covers all the ways you actually plan to use the software. If you need to use it on multiple computers, across different locations, or want to modify it for your business, negotiate these rights upfront—they're much harder to add later. Push back on overly restrictive language like "single user only" or "non-commercial use only" if those restrictions don't match your real needs. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause defines exactly what you're allowed to do with the software you're paying for.
Why should I care about this clause?
It specifies whether you can use it on one computer or many, whether you can modify it, and whether you can share it with others.
What are my options?
This matters because without clear permission, you could accidentally break the law by using software in ways the owner didn't intend—for example, using a single-user license on 10 computers is copyright infringement.
How does this affect small businesses?
In the UK and US, software is automatically protected by copyright law, so you only have the rights the contract explicitly gives you.