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Beta Participation Agreement

A Beta Participation Agreement covers important terms and conditions between a company and a customer when performing beta testing on a software program.

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Last updated December 19, 2024

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Suitable for Australia

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Written by

Edwin Montoya Zorrilla

Reviewed by

Damin Murdock

Document Overview

This agreement sets clear expectations for what is expected of the customer during the testing process as well as what the software supplier will provide. This agreement limits both parties' liability and protects crucial information and intellectual property. 

Beta testing refers to the final round of testing before a product is released commercially. The goal during this testing is to uncover as many issues or potential improvements as possible in a controlled environment. 

Use this Beta Participation Agreement if:

  • Your company has software you wish to have tested and want to protect the company’s intellectual property and other important data from being released.

  • You are undertaking to test a company’s software and wish to set clear expectations for what will be tested and what you will be provided in return.

What does the Beta Participation Agreement cover?

  • Duration

  • Setting up pilot installation

  • Limited licence

  • Testing procedure

  • Commercial release of software

  • Security & warranties

  • Indemnity & liability

  • Licence fee

  • Ownership

  • Reverse engineering

  • Risk & termination

  • Implied terms & consumer guarantees

  • Confidentiality

  • Licence fee

  • Software restrictions

  • Test criteria & environment

Further information:

The Legal Risk Score of a Beta Participation Agreement Template

Our legal team have marked this document as low risk considering:

  • The document allows the Supplier to retain full ownership and intellectual property rights of the software, which means the Customer has limited control and no ownership over the software they are testing.
  • The document specifies that the Customer must handle the protection of the software and related materials against unauthorized access or damage, placing significant responsibility on the Customer to ensure security.
  • The agreement lacks explicit provisions for the Customer's rights or protections in case the software does not meet the expected performance criteria or causes operational disruptions, potentially leaving the Customer exposed to operational risks.
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Beta Participation Agreement Checklist

Complete your free Beta Participation Agreement with our checklist

Ensure Proper Execution

Ensure that the agreement is duly signed by authorized representatives of both parties, and that all necessary company details, such as ACN and addresses, are correctly filled in.

Secure Storage of Agreement

Store the signed agreement securely, with both parties retaining a copy, to ensure that it can be referenced easily in case of disputes or clarifications.

Monitor Compliance

Regularly monitor compliance with the terms of the agreement, particularly those related to the security and confidential handling of the software.

Schedule Reviews

Set periodic review meetings or communications between both parties to discuss the testing progress, address any issues, and ensure that the testing is completed within the agreed timelines.

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