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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>62393</law_id><section_number>59.1-503.7</section_number><catch_line>Interpretation and requirements for grant</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>59.1-501.15</reference><reference>59.1-503.3</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="59.1">Trade and Commerce</unit><unit label="chapter" level="2" order_by="1" identifier="43">Uniform Computer Information Transactions Act</unit><unit label="article" level="3" order_by="1" identifier="3">Construction</unit></structure><text>
						<section id="a"><p><span class="prefix-number">a.</span> A license grants: <a id="paragraph-227533" class="section-permalink" href="https://vacode.org/59.1-503.7/#a"><i class="fa fa-link"/></a></p></section>
						<section id="a1" class="indent-1"><p><span class="prefix-number">1.</span> the contractual rights that are expressly described; and <a id="paragraph-227534" class="section-permalink" href="https://vacode.org/59.1-503.7/#a1"><i class="fa fa-link"/></a></p></section>
						<section id="a2" class="indent-1"><p><span class="prefix-number">2.</span> a contractual right to use any informational rights within the licensor&#x2019;s control at the time of contracting which are necessary in the ordinary course to exercise the expressly described rights. <a id="paragraph-227535" class="section-permalink" href="https://vacode.org/59.1-503.7/#a2"><i class="fa fa-link"/></a></p></section>
						<section id="b"><p><span class="prefix-number">b.</span> If a license expressly limits use of the information or informational rights, use in any other manner is a breach of <span class="dictionary">contract</span>. In all other cases, a license contains an implied limitation that the licensee will not use the information or informational rights otherwise than as described in subsection (a). However, use inconsistent with this implied limitation is not a breach if it is permitted under applicable <span class="dictionary">law</span> in the absence of the implied limitation. <a id="paragraph-227536" class="section-permalink" href="https://vacode.org/59.1-503.7/#b"><i class="fa fa-link"/></a></p></section>
						<section id="c"><p><span class="prefix-number">c.</span> A <span class="dictionary">party</span> is not entitled to any rights in new versions of, or improvements or modifications to, information made by the other <span class="dictionary">party</span>. A licensor&#x2019;s agreement to provide new versions, improvements, or modifications requires that the licensor provide them as developed and made generally commercially available from time to time by the licensor. <a id="paragraph-227537" class="section-permalink" href="https://vacode.org/59.1-503.7/#c"><i class="fa fa-link"/></a></p></section>
						<section id="d"><p><span class="prefix-number">d.</span> Neither <span class="dictionary">party</span> is entitled to receive copies of source code, schematics, master copy, design <span class="dictionary">material</span>, or other information used by the other <span class="dictionary">party</span> in creating, developing, or implementing the information. <a id="paragraph-227538" class="section-permalink" href="https://vacode.org/59.1-503.7/#d"><i class="fa fa-link"/></a></p></section>
						<section id="e"><p><span class="prefix-number">e.</span> Terms concerning scope must be construed under ordinary principles of <span class="dictionary">contract</span> interpretation in light of the informational rights and the commercial context. In addition, the following rules apply: <a id="paragraph-227539" class="section-permalink" href="https://vacode.org/59.1-503.7/#e"><i class="fa fa-link"/></a></p></section>
						<section id="e1" class="indent-1"><p><span class="prefix-number">1.</span> A grant of &#x201C;<span class="dictionary">all possible rights and for all media</span>&#x201D; or &#x201C;all rights and for all media now known or later developed,&#x201D; or a grant in similar terms, includes all rights then existing or later created by <span class="dictionary">law</span> and all uses, media, and methods of distribution or exhibition, whether then existing or developed in the future and whether or not anticipated at the time of the grant. <a id="paragraph-227540" class="section-permalink" href="https://vacode.org/59.1-503.7/#e1"><i class="fa fa-link"/></a></p></section>
						<section id="e2" class="indent-1"><p><span class="prefix-number">2.</span> A grant of an &#x201C;exclusive license,&#x201D; or a grant in similar terms, means that: <a id="paragraph-227541" class="section-permalink" href="https://vacode.org/59.1-503.7/#e2"><i class="fa fa-link"/></a></p></section>
						<section id="A"><p><span class="prefix-number">A.</span> for the duration of the license, the licensor will not exercise, and will not grant to any other person, rights in the same information or informational rights within the scope of the exclusive grant; and <a id="paragraph-227542" class="section-permalink" href="https://vacode.org/59.1-503.7/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> the licensor <span class="dictionary">affirms</span> that it has not previously granted those rights in a <span class="dictionary">contract</span> in effect when the licensee&#x2019;s rights may be exercised. <a id="paragraph-227543" class="section-permalink" href="https://vacode.org/59.1-503.7/#B"><i class="fa fa-link"/></a></p></section>
						<section id="f"><p><span class="prefix-number">f.</span> The rules in this section may be varied only by a record that is sufficient to indicate that a <span class="dictionary">contract</span> has been made and that is: <a id="paragraph-227544" class="section-permalink" href="https://vacode.org/59.1-503.7/#f"><i class="fa fa-link"/></a></p></section>
						<section id="f1" class="indent-1"><p><span class="prefix-number">1.</span> authenticated by the <span class="dictionary">party</span> against whom enforcement is sought; or <a id="paragraph-227545" class="section-permalink" href="https://vacode.org/59.1-503.7/#f1"><i class="fa fa-link"/></a></p></section>
						<section id="f2" class="indent-1"><p><span class="prefix-number">2.</span> prepared and delivered by one <span class="dictionary">party</span> and adopted by the other under &#xA7; <a class="law" title="Adopting terms of records" href="/59.1-502.8/">59.1-502.8</a> or &#xA7; <a class="law" title="Mass-market license" href="/59.1-502.9/">59.1-502.9</a>. <a id="paragraph-227546" class="section-permalink" href="https://vacode.org/59.1-503.7/#f2"><i class="fa fa-link"/></a></p></section></text><history>2000, cc. 101, 996; 2004, c. 794.</history><metadata></metadata></law>
