The commercial distribution of software often involves setting up a distribution network covering all the territories targeted by the business that developed the software. Many software developers retain the services of companies in programming and consulting firms for the purposes of adapting, distributing and providing technical support for their software. By doing so, the software developer can secure a larger market share for its product, while ensuring that the necessary technical support to make its product even more attractive.

This template sets out the main elements of the legal framework relating to the distribution of software.

We recommend using this template to define the relationship between the developer of the software, who lacks the resources to distribute its product in all markets, and a business that has the resources to ensure the adaptation, distribution and after-sales support for users. The software in this context is a highly specialized software for which customized technical support is provided locally. This is why a distributor with the ability to contribute to the software it distributes has added value.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Best Effort
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Clientele
0.01.07 Confidential Information
0.01.08 Duration
0.01.09 Encumber or Encumbrance
0.01.10 Escrow Agreement
0.01.11 Event of Default
0.01.12 Force Majeure
0.01.13 Fundamental Provisions
0.01.14 Improvements
0.01.15 Intellectual Property
0.01.16 Legal Representatives
0.01.17 PARTY
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Related Person
0.01.21 Rights
0.01.22 Software
0.01.23 Source Code
0.01.24 Subsidiary
0.01.25 System Documentation
0.01.26 Territory
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Grant
1.02 Conditions
1.02.01 Required by DEVELOPER
1.02.02 Required by DISTRIBUTOR
1.02.03 Choice
2.00 CONSIDERATION
2.01 Lump Sum
2.02 Royalties
2.02.01 Amount
2.02.02 Minimum Royalties
3.00 TERMS OF PAYMENT
3.01 Lump Sum
3.02 Royalties
3.02.01 Date of Payment
3.02.02 Correction
3.02.03 Minimum Royalties
3.03 Deposit in Trust
3.03.01 Contest
3.03.02 Remittance to DEVELOPER
3.03.03 Remittance to DISTRIBUTOR
3.03.04 Adjustment
3.04 Location of Payment
3.05 Imputation of payments
3.06 Waiver of compensation
3.07 Interest
4.00 SECURITY
4.01 In favour of DEVELOPER
4.02 In favour of DISTRIBUTOR
4.03 Letter of Credit
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE DEVELOPER
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Sole Owner
6.09 Sole Author
6.10 Originality
6.11 Compliance
6.12 Grant of license
6.13 Solvability
6.14 Intellectual Property
6.15 Judicial Procedures
6.16 Continuous Effect
7.00 REPRESENTATIONS AND WARRANTIES OF THE DISTRIBUTOR
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Resources
7.09 Contacts
7.10 Judicial Procedures
7.11 Solvability
7.12 Continuous Effect
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE DEVELOPER
9.01 Remittance
9.02 Escrow
9.03 Improvements
9.03.01 Undertaking
9.03.02 Notice
9.04 Assistance
9.04.01 Training
9.04.02 Support
9.05 Warranty
9.05.01 Defect
9.05.02 Liability
9.05.03 Indemnification
9.05.04 Insurance
9.06 Quality
9.07 Change in Orientation
9.07.01 Notice
9.07.02 Content
9.07.03 Abandonment
9.08 Marketing and Promotional Means
9.08.01 Supply
9.08.02 Collaboration
9.08.03 Publicity Budget
9.09 Non-sollicitation of Clientele
9.10 Non-competition
9.10.01 Scope
9.10.02 Penalty
9.10.03 Acknowledgement
9.11 Trade-mark
9.11.01 Registration
9.11.02 Infringement
9.12 Counterfeiture
9.13 First Refusal
9.14 End of the Agreement
10.00 DUTIES AND OBLIGATIONS OF THE DISTRIBUTOR
10.01 Adaptation
10.02 Distribution
10.02.01 Best Effort
10.02.02 Failure to Meet Objectives
10.03 Customer Service
10.03.01 Technical Support
10.03.02 After-sale Service
10.04 Rendering Account
10.05 Inspection
10.06 Defect
10.06.01 Correction
10.06.02 Loss of Benefit
10.07 Clientele Registration
10.08 Exclusivity
10.08.01 Scope
10.08.02 Extended Duration
10.08.03 Competing Software
10.09 No Contest
10.10 Acknowledgement
10.11 Prior Licenses and Assignments
10.12 Concurrential Watch
10.13 Warranty
10.13.01 Communication
10.13.02 Liability
10.13.03 Indemnification
10.13.04 Insurance
10.14 Reproduction
10.14.01 Undertakings
10.14.02 Notice
10.15 Improvements
10.15.01 Journal
10.15.02 Ownership
10.16 New Function
10.16.01 Addition
10.16.02 Acknowledgement
10.17 Taxes
10.17.01 Responsibility
10.17.02 Indemnification
10.17.03 Sales Tax
10.18 Non-solicitation of staff
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Without Notice
13.03 Prior Notice
13.04 Change in Control
13.05 Procedure
13.06 Effects
13.06.01 Rights
13.06.02 Documentation
13.06.03 Promotional Documents
13.06.04 Correspondence
13.06.05 New Grant
13.07 Unpaid Royalties
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF THE DEVELOPER
SCHEDULE A – EXCERPT OF A RESOLUTION OF THE DISTRIBUTOR
SCHEDULE 0.01.22 – DESCRIPTION OF SOFTWARE FUNCTIONS
SCHEDULE 9.02 – SOFTWARE ESCROW AGREEMENT
SCHEDULE 9.04 – DEVELOPER’S TECHNICAL SUPPORT
SCHEDULE 10.01 – SOFTWARE ADAPTATION SPECIFICATIONS