Reading time: 3 minutes

Reselling your software is a great way to promote your product and increase revenue, however, you should ensure that you have a detailed and well-constructed IT Reseller Agreement before you begin distributing your software to resellers.

Terms

As a distributor, you should ensure that your resellers sell your product in a form that you approve, and market your product as you prescribe. If you are a reseller, you should be clear about the terms of your relationship with the distributor, particularly with respect to your obligations. As a distributor, before drafting your IT Reseller Agreement, you should also consider whether resellers will be signing up to resell your products online or if you will be emailing and/or providing them with a hard copy. Although the terms of your IT Reseller Agreement will remain the same, the form in which the agreement will be drafted will depend on the format in which it will be accepted.

Schedule

As a distributor, where you are providing a number of different products or personalised software you should include a schedule at the start of your IT Reseller Agreement.

Your schedule will also make it easier to update your agreement, as you only need to update the schedule rather than redraft the entire IT Reseller Agreement. Your IT Reseller Agreement should set out the terms of the relationship in your schedule or, if your resellers are signing up to the agreement online, it should set out the nature of the relationship in the body of the agreement. For example, in which area is the reseller able to resell the product, and is the relationship exclusive or non-exclusive? In some situations, the reseller may not be the only reseller of your software in that particular area, and may be able to sell competing products, with your consent. In other situations, the reseller may be the only reseller of the software within a particular area but will not sell any competing software. As a distributor, you should also consider whether you will provide any training in relation to the software and if any support material or other material will be provided.

You should also set out in the schedule the technical support that you will provide in relation to the product and whether you will promote the reseller on your website or refer customers to the reseller. You should also include whether you will provide marketing material to the reseller and list the specific material you will provide. You should also list the prices for the products and any minimum purchase requirements that you have. In relation to support, you should list information in regards to how updates to the software can be made by you. Having a detailed schedule makes the terms of the relationship clear to each party and updating your document easier.

Conclusion

If you’re unsure how to go about drafting your IT Reseller Agreement or if you are a reseller and would like us to review an IT Reseller Agreement you have been given, you should speak with a qualified, experienced IT Lawyer, preferably one with experience drafting IT Reseller Agreements. At LegalVision, we draft IT Reseller Agreements on a regular basis, so if you’re in need of legal advice, contact us on 1300 544 755 and speak with one of our Client Care team.

Webinars

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

Online
If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Online
Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

Online
If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Online
Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Online
Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer