TechnologyContract
Software License Agreement Review Checklist: A Practical Checklist
A software license agreement is forty pages in which three unmarked clauses carry most of the risk: a liability cap the size of a team dinner, a clause licensing your uploaded data to "improve" the vendor's products, and an audit right priced at list. This checklist gives a reviewer a systematic, repeatable order of attack: pre-review context (deployment model, business stakes, regulatory regime), the license grant and its metric and audit rights, SaaS service levels and support, data ownership/security/breach/exit, IP and open source, warranties and disclaimers, indemnification, the all-important limitation-of-liability cap and carve-outs, and term, termination, escrow, and Section 365(n) continuity. Each phase pairs checkboxes with the WHY, the good-acceptable-dangerous spectrum, and the case law that gives the clause teeth (Vernor, Adobe v. One Stop Micro, MDY v. Blizzard, ProCD/Specht/Nguyen, UCC 2-316 and 2-719, 11 U.S.C. 365(n), Mission Product). It closes with common mistakes, primary authority, and related mclaw.io resources.