What is an End User License Agreement (EULA)?

An end-user license agreement (EULA) is a contract between the manufacturer and buyer which allows the buyer to use the subject product (generally software). End-user license agreements set the guidelines and limitations for use of the software. For example, a buyer accepts the end-user license agreement and the EULA requires him to use this software on a single computer system.

How Does an End-User License Agreement Work?

EULAs contain all the information relating to the software. Generally, it specifies guidelines, terms and conditions for using software. The user must sign or otherwise accept End-user license agreement before she is allowed to benefit form the software. An end-user license agreement (EULA) can be presented to buyer in a paper form but it is more often in electronic form. It is the prerequisite for downloading software to accept a user license before software is downloaded and installed. This includes attesting that she has read and accept the license terms and conditions. A EULA does not protect the end users. Instead, it protects only the intellectual property (such as copyrights) of the owners.