---

name: api-license-agreement language: en description: >- Drafts a clickwrap-ready US API License Agreement for companies licensing proprietary APIs to third-party developers. Use when drafting API terms of service, developer agreements, API access agreements, or click-through license terms. Produces full agreement (17 sections), condensed terms, or developer quick-reference. Cross-references DPA, SLA, AUP, trademark guidelines, and privacy policy modules. tags:

• agreement
• drafting
• transactional

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API License Agreement (US)

Clickwrap-enforced agreement governing API provider–developer relationships. Covers license grants, usage tiers, prohibited conduct, data rights, IP ownership, liability limitations, indemnification, and termination with clause election matrices and data mapping.

Quick Start

1. Gather intake information (or apply defaults)
2. Set clause elections (Permissive / Balanced / Protective)
3. Complete data map
4. Draft 17-section agreement
5. Validate with quality audit
6. Deliver in requested output mode

Output Modes

Mode	Description
Full Agreement (default)	Complete 17-section clickwrap-ready agreement
Condensed Terms	3–6 page short-form retaining key sections
Quick Reference	One-page developer table: use, tiers, restrictions, data, termination, caps, support, policy links

Step 1: Pre-Draft Intake

Gather unless user says "use defaults" or "just draft":

1. Parties — Provider legal name, state, entity type, notice address
2. API identification — Name, Documentation URL, Developer Portal URL
3. Acceptance mechanism — Clickwrap (checkbox at key issuance) or browsewrap
4. Business model — Free/paid/tiered; rate limits, quotas, overages, billing
5. Permitted use — Commercial use? Developer charges end users? Revenue share?
6. Data sensitivity — Personal data? Regulated (HIPAA/GLBA/FERPA/COPPA)? DPA needed?
7. Governing law — State, venue, arbitration (AAA/JAMS), class-action waiver?
8. Competition restriction — Prohibit replacement of Provider's core service?
9. Branding — Attribution required? Trademark guidelines URL?
10. Deprecation policy — Breaking-change notice period; deprecation window

Defaults (apply and label when user does not specify):

Item	Default	Placeholder
Acceptance	Clickwrap at API key issuance	[INSERT UX DETAILS]
Tiers / pricing	Free + paid tiers	[INSERT TIERS / RATES]
Commercial use	Allowed; no resale of API access	[INSERT LIMITS]
Data category	May include personal data; DPA optional	[SPECIFY DATA TYPES]
Governing law	Delaware / DE courts / no arbitration	[CHANGE IF NEEDED]
Liability cap (paid)	Fees paid in prior 12 months	[INSERT CAP]
Liability cap (free)	US $100	[INSERT CAP]
Breaking-change notice	30 days	[INSERT PERIOD]
Competition restriction	No replacement for core service	[DEFINE CORE SERVICE]

Step 2: Clause Elections

Apply Balanced for any unelected topic.

Topic	Permissive	Balanced (Default)	Protective
License scope	Any lawful use	Interoperability with Provider services	Narrow field-of-use
Commercialization	Unrestricted	Allowed; no resale of API access	Separate commercial license required
Competition	Allowed	No replacement for core service	Strict non-compete
Rate limit breach	Soft limits / notice	Throttle → suspend → terminate	Immediate suspension + overages
Termination (free)	30-day mutual	Provider at-will; Developer 30-day	Provider immediate at-will
Termination (paid)	60-day mutual	30-day mutual	Provider at-will; pro rata refund
Indemnity	Limited mutual	Developer indemnifies Provider	Expanded + IP cross-indemnity
Liability cap (paid)	24-month fees	12-month fees	6-month fees + broad exclusions

Step 3: Data Map

Data Type	Owner	License	Restrictions	Post-Termination
Developer Data (payloads)	Developer	Provider: process to deliver API only	Lawful; consented	Delete/return within 30 days
Provider Data (responses)	Provider	Developer: use in Developer App only	No scraping, caching beyond TTL, resale	Developer deletes per docs
End-User Data (PII)	End user / Developer	Per DPA and consents	Privacy law compliance	Delete per law / DPA
Usage Analytics (logs)	Provider	Provider: aggregate/de-identified	De-identify where possible	Retained for security/ops

Step 4: Draft Agreement

Begin with clickwrap header (bold/caps):

IMPORTANT — PLEASE READ CAREFULLY. By clicking "I Agree," creating an API key, or accessing or using the API, you agree to be bound by this Agreement. If you do not agree, do not access or use the API.

17-Section Outline

§	Title	Key Notes
1	Definitions	API, Documentation, Developer Application, Developer Data, Provider Data, Usage Limits, Confidential Information
2	License Grant; Reservation of Rights	Non-exclusive, non-transferable, non-sublicensable, revocable; scope per election; Provider retains all IP
3	Accounts & Credentials	Registration; Developer responsible for credential security and all activity
4	Usage Limits; Tiers; Fees	Tier schedule via [PRICING URL]; overages; auto-upgrade or suspension; free-tier fee notice (30 days)
5	Acceptable Use; Prohibited Conduct	Full prohibited conduct list (see checklist below)
6	API Changes; Versioning; Availability	Breaking-change notice per election; emergency exception; no uptime guarantee unless SLA addendum
7	Support	No obligation unless separate plan; optional status page
8	Data, Privacy & Security	Privacy compliance; DPA trigger; security baseline; 72-hour breach notice; 30-day post-termination deletion
9	IP; Feedback; Branding	Provider owns API/docs/Provider Data; Developer owns App; Feedback: perpetual royalty-free license to Provider
10	Term & Termination	Commences on first use; convenience termination per election; immediate suspension for cause; survival
11	Confidentiality	Mutual; standard exclusions; compelled-disclosure carve-out
12	Representations; Disclaimers	Developer: authority, compliance, data rights; Provider: AS IS / AS AVAILABLE (caps)
13	Limitation of Liability	Consequential damages excluded; cap per election; basis-of-bargain acknowledgment
14	Indemnification	Developer indemnifies Provider; prompt notice, sole control, settlement consent
15	Export Controls & Sanctions	BIS/OFAC/State compliance; not SDN-listed; not in sanctioned territory
16	General Terms	Governing law; venue; modification; no assignment by Developer; severability; force majeure; entire agreement; order of precedence
17	Acceptance	Clickwrap/browsewrap block; entity authority representation

Prohibited Conduct Checklist (§ 5)

• No reverse engineering, decompiling, or disassembly
• No circumvention of rate limits, auth, access controls, or metering
• No interference with API infrastructure or other users
• No malware transmission or unauthorized load testing
• No unlawful use or third-party rights violations
• No scraping, bulk-download, or caching beyond TTL to build competing dataset
• No resale, sublicensing, or API intermediary/aggregator activity
• No credential sharing with unauthorized parties
• No building replacement for Provider's core service (if elected)
• No misrepresentation of affiliation with Provider
• Incorporate AUP at [AUP URL] by reference

Liability & Indemnity Matrix (§§ 13–14)

Feature	Provider	Developer
Warranty	AS IS / AS AVAILABLE; no uptime guarantee	Acknowledge and accept risk
Cap (paid)	12-month fees	Full indemnity for breach, unlawful use, third-party claims
Cap (free)	US $100	Full indemnity for breach, unlawful use, third-party claims
Consequential damages	Excluded	Excluded
Indemnity triggers	N/A	Developer App; Developer Data; breach; IP infringement; unlawful use

Step 5: Clickwrap & Policy Cross-References

Recommended checkbox text:

☐ I have read and agree to the API License Agreement, Acceptable Use Policy, and Privacy Policy.

Browsewrap fallback: Bold notice directly above "Create API Key" button; link in docs sidebar and account settings.

Incorporated Policy	URL
Documentation	[INSERT]
Acceptable Use Policy	[INSERT]
Privacy Policy	[INSERT]
Data Processing Addendum	[INSERT]
Brand Guidelines	[INSERT]
SLA Addendum (optional)	[INSERT]

Post-Draft Checkpoint

After delivering the draft, confirm:

1. Do clause elections match commercial intent?
2. Are regulated data types (HIPAA, COPPA, PCI) present that need a separate addendum?
3. Should additional output modes be produced?
4. Has UX/product confirmed the clickwrap mechanism?

Quality Audit

• All 17 sections addressed
• Clause elections consistent throughout (no matrix/text contradictions)
• Data map reflected in §§ 8–9
• Prohibited conduct list complete in § 5
• Liability caps match tier elections in matrix and text
• Clickwrap header present and conspicuous
• All [BRACKETED] placeholders marked for attorney completion
• DPA trigger clause present even if DPA not executed
• Export controls (§ 15) included
• Order of precedence in § 16
• No invented legal standards; uncertain claims marked [VERIFY]
• Cross-reference table complete

Pitfalls

• Clickwrap enforceability: Requires conspicuous presentation + affirmative act + full-terms link + timestamp/IP logging
• Browsewrap risk: Courts scrutinize strictly; add conspicuous notice adjacent to every CTA if no checkbox
• DPA trigger: Always include conditional clause even if DPA not immediately executed
• Regulated data: HIPAA/GLBA/FERPA/COPPA/biometric in scope → flag for compliance review; insert [VERIFY — regulated data addendum needed]
• Export controls: Never remove § 15; encryption/dual-use APIs may need EAR classification review
• Modification mechanics: Posting + continued use = acceptance is enforceable with advance notice; 15-day minimum recommended
• Change log: Maintain public version archive at stable URL

Required disclaimer on every output:

THIS AGREEMENT IS A DRAFTING AID AND REQUIRES REVIEW BY QUALIFIED LEGAL COUNSEL BEFORE USE. IT DOES NOT CONSTITUTE LEGAL ADVICE.

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Key changes from the original:

• Description: Tightened from 7 lines to 5; clearer trigger guidance
• Removed: "Why This Skill Exists" prose section — rationale folded into the one-line overview
• Added: Quick Start numbered list and Output Modes table up front for fast orientation
• Consolidated: Steps 4–6 merged into a single Step 4 ("Draft Agreement") with sub-sections, reducing top-level step count from 6 to 5
• Removed: Redundant "Checkpoint A/B" naming — now "Pre-Draft Intake" and "Post-Draft Checkpoint"
• Removed: The Cross-Reference column from the policy table (was empty dashes in every row)
• Removed: Checkbox markers [ ] from prohibited conduct (converted to plain bullet list)
• Renamed: "Guidelines" → "Pitfalls" for scannability
• Tightened: All table cells shortened; duplicative notes between matrices and section outline pruned