Software Distribution Agreement (Drafting)

Software distribution agreements are important for distributors to know where and how to distribute a developer's software. These are equally important for developers to define their relationship with distributors. Distribution agreements are popular in the business world because they permit third parties, known as distributors or licensees, to sell a developer's product to consumers. Software distribution agreement specifically allow distributors to market and sell the developer's software to end users. A software distribution agreement outline the rights and duties of both the developer and the distributor to avoid disputes later on.

Every software distribution agreement is unique and there's no blanket solution though, many agreements have common terms. The developer usually decides if the distributor has an exclusive software distribution agreement, which would prevent other distributors from selling the software in the same region, or a nonexclusive agreement, which would allow other distributors to sell in the same market Distribution agreements are popular in the business world because they permit third parties, known as distributors or licensees, to sell a developer's product to consumers. A software distribution agreement outline the rights and duties of both the developer and the distributor to avoid disputes later on.

 

Features of Distribution Agreement:

 

1.Release:

 

The Licensor will release the software with all testing completed prior to the agreement date to the licensee.The Licensor shall, to the best of their ability, keep all software related to this software distribution agreement up to date and operational throughout the term of this agreement.

 

2.Support and Training:

 

This section of the template states that your company agrees to provide training and support to the distributor’s sales team. Additionally, you agree to provide after-sale support for the software.

 

3.Marketing:

 

The marketing section of this template allows the distributor to, at their expense, conduct advertising and other marketing activities to promote your software for purposes of generating sales.

 

4.Escrow:

 

Prior to the initial release date the Licensor and Licensee shall enter into an escrow agreement that will accompany this software distribution agreement.

 

5.Reseller Exclusivity:

 

During the term of this agreement the licensor is in agreement not to sell or provide the software to any third party individuals.

Documents Required


Passport Photo

Passport photo of all parties.


PAN Card

PAN card of all parties.


Aadhar Card

Aadhar card of all parties.


Utility Bill

Utility bill of Electricity or Telephone.


Address Proof

Valid Address Proof of all the parties.


Licence

Valid Driving Licence of all the parties.


Terms and Conditions

Terms and Conditions between the parties.


Other Documents

Other documents will be intimated through e-mail.

FAQ

A distribution deal, also known as distribution contract or distribution agreement, is a legal agreement between one party and another, to handle distribution of a product herein it’s a software. The product supplier is excluded from having any other distributors.

A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with software to sell and another company that markets and sells the products. The distributor agrees to buy software from the supplier company and sell them to clients within certain geographical areas.

The customer goes to a reseller to simplify the ordering process and offload procurement and order processing tasks. Working with a reseller can also streamline product sourcing.

An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. In exchange for this kind of exclusivity, the distributor typically has to offer something valuable to the supplier.

The agreement should specify what type of software, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.

Methods for distributing products include self-distribution, wholesalers and distributors. Self-distribution requires time and infrastructure; wholesalers and distributors add markups so you'll earn less for your products.