Are you a developer selling an app through Atlassian’s online marketplace? You would have agreed to the Atlassian Vendor Agreement and the Marketplace Terms of Use before you listed any apps on their marketplace.

From 31 March 2019, the Vendor Agreement and Terms of Use will change. One of the changes includes that you need an end user licence agreement (EULA) between yourself and the end users of your app. If you do not have a EULA by 1 April, Atlassian can delist your app. Previously, Atlassian had included a standard EULA in its Terms of Use but will no longer provide that template. This article will explain what you need to include in a EULA if you wish to sell on Atlassian’s online marketplace. 

How Did The Atlassian Standard EULA Work?

A EULA is a contract between a software publisher and an end user about the use of the publisher’s software. Although every EULA is different, most EULAs cover:

  • IP ownership;
  • prohibited use of software (such as reverse engineering the software); and
  • how you use personal information from end users.

The Terms of Use contains a standard EULA, so many developers have opted to use those standard terms rather than draft a specific EULA. Your prospective users will have agreed to those standard terms when buying apps, as the Terms of Use apply to their use of the marketplace. However, as the standard template will no longer be available, you will lose protections for your software such as:

  • IP ownership;
  • prohibited uses; and
  • limits on authorised users.

IP Ownership

The standard EULA grants end users a licence to use your app. That means end users can use your app but not own it. Otherwise, users can claim rights beyond the limits of the licence or ownership over the app. 

Prohibited Uses

The standard EULA outlines what users cannot do with the app. The clause can ban actions such as:

  • reverse engineering of the software (where the user figures out how the software works to copy the code);
  • modifying the software (which may stop the app from working for your other users); or
  • decompiling or disassembling the software (where the app may not work for others, or the user copies the content).

Limits on Authorised Users

The standard EULA limits the number of people who can use the software. You can only have a permitted number of users for the app. Adding additional users without payment is not permitted.

Why You Need a EULA

Atlassian’s new terms require you to upload your own EULA before you can sell your app on its marketplace. You may want to get a tailored EULA that protects your app and your business from unwanted risks. The new EULA should contain key clauses, such as:

  1. IP ownership; 
  2. prohibited uses; and
  3. privacy. 

1. IP Ownership

Like the standard EULA, your tailored EULA should protect your app from any users claiming unwanted ownership over your product. Make it clear that IP ownership belongs to you. If your software uses licensed software as part of its make-up, extend the ownership of IP to your licensors (people who have licensed their software to you). Furthermore, you should emphasise that using the app does not mean the end user owns the app.

2. Prohibited Use

With a tailored EULA, you can cover a broader range of prohibited uses for your app. Your prohibited use list should be comprehensive to protect your software from misuse. For example, you can state that the user must not:

  • use the software for illegal means or in any way that breaks any applicable laws;
  • use any method to attempt to circumvent or disable the software or its features;
  • try to modify, copy, adapt or reproduce the software except when necessary to operate the software properly;
  • try to decompile, disassemble, reverse engineer or use other methods to obtain the software’s source code;
  • distribute, restrict, sell, rent, lease, sub-license, transfer, publish or disclose the software to any third party (unless you explicitly permit one or more of these actions in the EULA);
  • remove or alter any IP assets such as trade marks, logos, copyright, as well as legends, symbols or labels connected to the software;
  • use the software to infringe on third party IP rights, such as copyrights, trade secrets and patents;
  • try to undermine the security or integrity of computer systems owned by yourself or a third party; or
  • misuse the software in any way to stop the app from functioning properly or stopping other users from using the app. 

3. Privacy

Your EULA should cover your privacy obligations. Users need to know you can handle their personal information (PI) properly. The PI may come from Atlassian’s database or from how you monitor customer use of the app. Your EULA should contain a notice that tells users that you are collecting their PI and summarise how you will use the PI. The notice is not a substitute for a separate privacy policy. However, a privacy notice is still useful to have within a EULA. 

Key Takeaways

From 31 March 2019, you will need your own EULA as Atlassian will no longer provide a standard EULA. A tailored EULA means your app has better protection from user misuse. As part of the EULA, you can:

  • set out clearly who owns the IP of the app;
  • cover a wide range of prohibited uses; and
  • Inform users about privacy obligations.

If you have any questions or need assistance in drafting a EULA, get in touch with LegalVision’s IT lawyers on 1300 544 755 or fill out the form on this page.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.
Chloe Sevil

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