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API License Agreement
Define API rights, obligations, and restrictions with this customizable API License Agreement template.
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API LICENSE AGREEMENT
This API License Agreement (“Agreement”) is entered into by and between LicensorNameLicensor NameLicensorName (“Licensor”) and LicenseeNameLicensee NameLicenseeName (“Licensee”), effective as of EffectiveDateEffective DateEffectiveDate.
By accessing or using the Licensor’s Application Programming Interface (“API”), Licensee agrees to the following terms:
1. Definitions
“API” means the application programming interface, documentation, and related tools provided by Licensor.
“Licensed Use” means the permitted use described in this Agreement.
“Licensee Application” means Licensee’s product, software, or service integrating the API.
2. Grant of License
Licensor grants Licensee a limited, non-exclusive, non-transferable, revocable license to access and use the API solely for the Licensed Use and subject to all restrictions herein.
3. Permitted Use
Licensee may:
integrate the API into Licensee Applications;
use API results internally or as part of authorized services;
display data or functionality derived from the API in compliance with Licensor’s branding or attribution guidelines.
4. Restrictions
Licensee shall not:
sublicense, sell, or distribute the API;
reverse engineer, decompile, or attempt to derive source code;
exceed rate limits or usage quotas;
use the API to build a competing service;
engage in unlawful, harmful, or abusive use.
5. Ownership and Intellectual Property
The API and all associated intellectual property remain the exclusive property of Licensor. No rights are granted except those expressly set forth in this Agreement.
6. Fees and Payment (if applicable)
If access to the API is fee-based, Licensee shall pay according to Licensor’s published pricing or separate order forms. Late payments may result in suspension or termination.
7. Support and Service Levels
Licensor may provide documentation, developer support, or uptime commitments as specified in a Service Level Agreement (if any). Absent a written SLA, Licensor provides the API “as available.”
8. Disclaimer of Warranties
The API is provided “as is.” Licensor disclaims all warranties, including merchantability, fitness for a particular purpose, and non-infringement.
9. Limitation of Liability
Licensor’s liability shall not exceed the total fees paid by Licensee in the preceding XXX months. Licensor is not liable for indirect, incidental, or consequential damages.
10. Data Use and Privacy
Licensee must comply with all data protection laws. If Licensee Applications collect personal data, Licensee is responsible for proper disclosures, consent, and safeguards.
11. Confidentiality
Licensee agrees to maintain the confidentiality of non-public information regarding the API, system architecture, or usage policies.
12. Term and Termination
Termination by Licensor: Licensor may suspend or terminate access immediately upon breach.
Termination by Licensee: Licensee may terminate by discontinuing use and providing notice.
Upon termination, Licensee must cease all use of the API and delete related materials.
13. Governing Law
This Agreement shall be governed by and construed under the laws of JurisdictionJurisdictionJurisdiction, without regard to conflicts of law.
14. Entire Agreement
This Agreement constitutes the complete agreement between the parties with respect to the API, superseding all prior understandings.
15. Signatures
Licensor
Signature: ________________________
Name/Title: ________________________
Date: ____________________________
Licensee
Signature: ________________________
Name/Title: ________________________
Date: ____________________________
16. Optional Addenda
Addendum A: Service Level Agreement (uptime, response times)
Addendum B: Branding and Attribution Guidelines
Addendum C: Data Processing Agreement (if handling personal data under GDPR/CCPA)
17. Checklist (for Licensor)
☐ Defined API scope and limits
☐ Included fee/payment schedule (if relevant)
☐ Attached SLA (if offered)
☐ Attached Data Processing Addendum (if required)
☐ Executed by both parties
Details
Learn more about
API License Agreement
API LICENSE AGREEMENT FAQ
What is an API License Agreement?
An API License Agreement is a legal contract that governs how third parties can access and use a company’s Application Programming Interface. It explains the conditions under which developers, partners, or customers may integrate with your system, while protecting the provider’s intellectual property and limiting risks of misuse.
Why is an API License Agreement important?
It is important because it sets clear boundaries and expectations. For providers, the agreement reduces legal exposure by defining acceptable and prohibited uses, clarifying who owns the data, and outlining what happens if terms are violated. For users, it establishes what they can rely on in terms of access, support, and service continuity. Together, these protections encourage collaboration without sacrificing security or control.
When should you use an API License Agreement?
You should use this type of agreement whenever you make an API available to external users, whether publicly to a developer community, privately to trusted business partners, or selectively to paying customers. It becomes especially critical if your API manages sensitive information, underpins essential services, or is tied to your revenue model.
What should an API License Agreement include?
An effective agreement generally includes a clear explanation of the rights being granted, restrictions on use, ownership of intellectual property, responsibilities for security and compliance, rules about fees or charges, and the conditions under which access may be suspended or terminated. It may also define the limits of liability and any disclaimers about service reliability. These provisions create a balanced framework that protects both the provider and the user.
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