An End-User License Agreement (EULA) is a legal contract between you and the software developer that allows you to use their software. You agree to abide by the terms of this agreement, which typically include restrictions on how you can use the software and what happens if you violate those terms.
When you install software on your computer, you usually see an EULA before you click "I Agree" or "Next." The agreement is sometimes presented as a pop-up window, but more often it's just a link at the bottom of the installation screen.
What Does an EULA Cover?
The exact contents of a EULA vary depending on the type of software being licensed, but here are some common topics:
Copyright notice: Who owns the rights to the software — who paid for its development?
License type: Is this free or paid for? What are your rights to use it?
Limitations: What uses are prohibited? For example, some programs may not be used for commercial purposes without permission from the developer. Other programs might limit how many computers they can be installed on without additional fees.
Termination: How long do you get to keep using this program before it expires? Are there any other reasons why it might stop working?