a saas software license agreement is used when a company’s proprietary software is being licensed to a licensee which differs from a regular saas agreement.3 min read a saas software license agreement is used when a company’s proprietary software is being licensed to a licensee. why would a saas vendor prefer to grant a license versus authorized access to the software? when a software license agreement is used, the licensor maintains a legal interest in the intellectual property such as: a license grants rights in limited use. they can also be limited as to: this is predicated on the fact the software has to be locally installed or downloaded on the licensee’s computer, network, or platform. typically, this type of license doesn’t apply to saas agreements since the customer is not installing or downloading the software, but rather remotely logging into the vendor’s servers to use the software, typically online. in the event of bankruptcy, a vendor may cease the performance of contractual obligations, which includes any outstanding saas services.