What is an End User License Agreement?
An EULA is a specific contract between the software creator, developer, or publisher, and the individual end user who purchases the software. The contract gives the user a right to use a copy of the app or software in a specific way, subject to clear conditions.
The end user can't download or install the software copy until they agree to these conditions of use. In other words, think of an EULA like a rental agreement. The user pays to use the software, but the developer still owns it.
This is important because there's a common misconception that end users "own" their copy of your app. People often assume that when they buy something, it belongs to them. However, all the end user has is a functioning copy of your software - not rights to the software itself.
Who Needs an End User License Agreement?
Essentially, if you make your technology available for public use, then you have a need for an EULA.
So, for example, if you're a video game company that supports online gaming, or you're a developer and you've made an app available on the Apple App Store, you should have an EULA.