What Is the Difference Between “Terms of Service” and “EULA”?

Short Answer

EULA’s are intended to cover software apps. TOS are used to govern websites and mobile apps.


Longer Answer

An End User License Agreement, which may be also referred to as the software license, gives the user the right to use your software and comply with all the terms you set forth in the EULA. The user will have the option of accepting all the terms by expressly clicking “accept” or simply by just using the application. Or refuse to accept the agreement by returning the software (if physical) or clicking “I do not accept”. Think of it as like a rental agreement for your users.
A Terms of Service Agreement also named Terms of Use or Terms and Conditions covers a range of issues that govern the behavior of a user when they are using your website or mobile app service. Things like content ownership, third party websites, payments, copyright notices and more are included in this document. Based on those clauses, you give your company a framework to restrict or terminate users’ access if they violate the contract. If you have a web-based service, you can see why it’s vital for you to have this in place in order to set expectations for users entering your site.

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1 Comment

  • Short and to the point! In both cases, whenever any software or web app / SaaS are used in organizational IT environment, legal or IT departments should be aware of the accepted terms to maintain compliance.

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