End-user license agreement
YOO-luh
A legal contract between a software publisher and the end user that specifies how the software may be used.
An EULA is the license agreement you accept when you install or use software. It grants you the right to use the product under specific conditions. You do not own the software; you have a license to use it.
EULAs are most common with downloadable software: desktop apps, mobile apps, and games. They typically restrict reverse engineering, redistribution, and use beyond a certain number of devices. They also limit the publisher's liability and define what happens if you violate the terms.
For SaaS products delivered through the web, the terms of service usually replaces the EULA. But products that include a downloadable component (a desktop app, CLI tool, or SDK) often still have an EULA alongside the ToS.
Examples
A developer downloads a commercial SDK.
Before installation, the SDK presents an EULA. It grants a license for one developer to use the SDK in production. Sharing the license key with other developers violates the agreement.
A company audits its software licenses.
The audit reveals 50 employees using a design tool licensed for 20 seats. The EULA limits use to the purchased number of seats. The company must purchase additional licenses.
A game publisher includes anti-cheat provisions.
The EULA prohibits modifying game files or using third-party tools that alter gameplay. Players who violate this clause can have their accounts terminated.
Frequently asked questions
Is an EULA legally enforceable?
Generally yes, though enforceability varies by jurisdiction. Courts have upheld clickwrap EULAs (where users click 'I agree') more consistently than browsewrap agreements (where terms are buried in a link).
Do SaaS products need an EULA?
Pure web-based SaaS products typically use a Terms of Service instead. If the product includes downloadable components like a desktop app or SDK, an EULA may be needed for those components.
Related terms
The legal contract between a software provider and its users that governs how the product may be used.
A permissive open source license that allows anyone to use, modify, and distribute the software with minimal restrictions.
A source-available license that restricts commercial use for a set period before converting to a fully open source license.
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