Having a software user agreement drafted: costs and process

Having a software user agreement drafted by a lawyer typically costs between 500 and 1,500 euros for a standard agreement, and more when custom provisions, multiple license types, or a data processing agreement are involved. Not every situation requires this step: for simple, occasional use of software, you can often manage with a clear basic text. Below, you can read when you can do it yourself, what the process with a lawyer entails, and what the costs depend on.

The short answer

• Costs: expect 500 to 1,500 euros for a standard agreement, more for customization or complex licensing structures.
• Process: intake regarding your software model, draft text, verification against your requirements, delivery, and any necessary aftercare.
• You can do it yourself: for simple, one-off, or internal software without sensitive data, a basic text is often sufficient.
• Engaging a legal expert pays off: for structural delivery to customers, processing of personal data, or significant liability risks.
• Fixed price possible: many firms work with a fixed rate for a standard agreement, with an hourly rate for custom work or negotiation.
• Speed: a standard process usually takes one to two weeks, depending on the delivery of your information.

Having a software user agreement drawn up: what does that cost?

The cost of having a software user agreement drafted depends primarily on the complexity of your software model. A simple license for a single software product with a fixed number of users is quicker to put on paper than an agreement that combines multiple license types, such as a combination of an on-premises installation and a cloud module, with different terms and conditions for each component. The question of whether a data processing agreement is required, whether specific liability arrangements are needed with major customers, and whether the text needs to be drafted in multiple languages ​​also influences the price.

For a standard agreement, you can expect a fixed rate at most firms, often between 500 and 1,500 euros. For custom work, negotiations with a major client, or an extensive data processing agreement, work is more frequently done on an hourly basis, as the number of revision rounds is more difficult to estimate in advance.

How does the process with a lawyer work?

The process begins with an intake during which the legal expert maps out your software model: do you supply a locally installable package, a combination with a cloud component, or custom software for a single client? It is also discussed whether personal data is processed, how many users or installations you wish to allow, and what warranty and liability arrangements you have in mind.

Based on this, the legal expert drafts a concept agreement containing the core elements: the right of use, the scope of the license, restrictions such as the prohibition on reverse engineering with the statutory exception of Section 45m of the Copyright Act, and provisions regarding maintenance, warranty, and liability. You review the draft, indicate where it does not align with your practice, and the legal expert incorporates this into a subsequent version. Upon delivery, you often receive a brief explanation of the key provisions, enabling you to explain what the agreement covers yourself should a client request it.

Fixed rate or hourly rate?

A fixed rate provides clarity upfront and fits well with a standard agreement where the number of revision rounds remains limited. An hourly rate is more logical when you do not yet know exactly what your licensing model will look like, when negotiations are required with a major client regarding deviating terms, or when the data processing agreement needs to be extensively tailored to the requirements of a specific client. Ask in advance for an estimate of the number of hours and what is and is not included in the rate, such as a check of your click-wrap implementation on the website.

A real-life example. A software company that had developed its own time tracking package worked for years with a self-written user agreement based on a template found online. When the company expanded to hundreds of customers and a larger organization sought legal advice prior to purchase, it turned out that the text did not contain a decompilation provision that aligned with Section 45m of the Copyright Act, and a data processing agreement was missing, even though the package processed employee scheduling and time data. A lawyer rewrote the agreement within two weeks, after which the deal went ahead after all.

Honest recommendation

You do not always need to have a software user agreement drafted. If the software is for one-off or internal use, without the processing of personal data and without you intending to supply the software to customers on a structural basis, a clear basic text is often perfectly sufficient. However, ensure that the key points from this series of articles are covered: the scope of the license, the prohibition of reverse engineering with the statutory decompilation exception, and a basic limitation of liability.

Be sure to have the agreement drafted or reviewed as soon as you start supplying software to customers on a structural basis, as soon as personal data is processed, or as soon as you negotiate deviating terms with larger customers. The costs of a lawyer then outweigh the risk of a defective agreement that would still need to be rectified in the event of a dispute or a customer purchase evaluation, usually under more time pressure than if you arrange it properly in advance.

Want to know more or need help? Check out our page on a software user agreement, first read what a software user agreement is , and see what it should include if you want to draft.

Frequently Asked Questions