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EULA, Terms of Services, and Service Level Agreement: What’s The Difference?

The terms : End User License Agreement (EULA), Terms of Services (TOS), and Service Level Agreement (SLA) may be familiar among business people who use certain computer devices or technology to support their business activities. Understanding these three aspects is important to determine the direction of company management in the future. In particular, the determination of this aspect will also affect the type of agreement document to be prepared.

Then, what are some basic differences that should be noted?

Regarding the parties to the agreement, the determination of the three categories above will determine the form of the basic relationship between the business owner and the external party. The party for type of EULA will appoint the licensor and the licensee. The legal consequence of this relationship is a right for the licensee to take advantage of the licensee’s software without transferring rights to it. This is different from the type of TOS, where the related party is the company and the user so that the relationship created is functional. As for the SLA, the related party is the organizer and the client.

In terms of substance, the agreement in the EULA will take the form of restrictions for users from using company-owned software. As for the TOS, in general it can be viewed as a form of Terms and Conditions. Several things that need to be regulated in this agreement pertain to various aspects such as application use, accountability, as well as links to other supporting agreements. However, the basic difference between TOS and EULA is in terms of products, where TOS emphasizes services and EULA on products. Furthermore, with regard to SLA, some substantial emphasis will lead to the availability and basic principles and responsibilities of the organizer.

Through the description above, the basic type of agreement for companies providing services is TOS. However, in terms of the need for emphasis on consumers to behave well in use, SLA is also needed. From a substance point of view, the agreement with the SLA type will be more detailed than the TOS. However, it is possible for your company to take advantage of these 3 (three) types of agreements at once because this will depend on your company’s operations.

Market trends suggest game developers and businesses to use EULA and service agreements with TOS and SLA. In practice, to determine the type of agreement that suits your company, consulting services can be an alternative to prepare for this.


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