What Does “Perpetual License” Mean in a Contract?
A license to use intellectual property that lasts forever, rather than for a limited term.
Detailed Explanation
Perpetual licenses don't expire—once granted, the licensee can use the IP indefinitely. This differs from subscription licenses that end when you stop paying. Perpetual doesn't mean irrevocable; breach can still terminate rights.
Software traditionally used perpetual licenses (buy once, own forever). SaaS has shifted to subscription models. Perpetual licenses may still require maintenance fees for updates and support.
Example in a Contract
“Licensor grants Licensee a perpetual, non-exclusive license to use the Software. Maintenance and support are available for an additional annual fee.”
Why It Matters
Perpetual licenses provide long-term certainty—you won't lose access if terms change. But verify what's included: Are updates covered? What happens to the company? A perpetual license to abandoned software may have limited value.
Related Terms
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