Understanding the Microsoft Visual Studio Code License Agreement (2023)


In the realm of software development, having a clear understanding of licensing agreements is paramount. Microsoft Visual Studio Code, a powerful and versatile code editor, comes with its own set of license terms that users must comprehend. In this article, we delve into the intricacies of the Microsoft Visual Studio Code License Agreement, exploring key aspects that developers need to be aware of to ensure compliance and informed usage.

Installation and Use Rights

General Usage

The Microsoft Visual Studio Code License Agreement grants users the right to utilize any number of copies of the software for application development and testing. This includes deployment within internal corporate networks, providing a flexible environment for developers.

Demo Use

Developers are further allowed to use the software in demonstrations of their applications, showcasing its capabilities to stakeholders and end-users.

Third-Party Components

It's crucial to acknowledge that the software may incorporate third-party components governed by separate legal notices or other agreements. Developers should refer to the ThirdPartyNotices file accompanying the software for comprehensive information.


The software provides the option to download additional Microsoft and third-party software packages from the extension marketplace. It is essential to note that these packages operate under their own licenses, distinct from the main agreement.

Data Handling

Data Collection

Microsoft may collect information about users and their software usage to enhance services and product quality. Users have the option to opt-out of certain data collection scenarios, as outlined in the product documentation.

Processing of Personal Data

For users falling under the European Union General Data Protection Regulation Terms, Microsoft commits to specific data processing standards effective from May 25, 2018.


The software may periodically check for updates and install them automatically. Users are obligated to receive these updates without additional notice. It's imperative to understand that updates may not encompass or support all existing software features, services, or peripheral devices.


Users providing feedback to Microsoft grant the company the right to use, share, and commercialize the feedback without charge. It's essential to refrain from providing feedback subject to licenses requiring Microsoft to license its software or documentation to third parties.

Scope of License

Understanding the scope of the license is critical. Users are granted specific rights to use the software, and compliance with technical limitations is mandatory. Reverse engineering, modifying notices, and unlawful use are strictly prohibited.

Support Services

Given that the software is provided "as is," users should be aware that Microsoft may not offer support services for it.

Entire Agreement

The Microsoft Visual Studio Code License Agreement, along with its supplements, updates, and support services, constitutes the entire agreement for the software. Users should familiarize themselves with these terms to ensure comprehensive compliance.

Export Restrictions

Users must adhere to domestic and international export laws and regulations governing the software's use, including restrictions on destinations, end-users, and end use.

Applicable Law

The applicable law varies based on the user's location. If acquired in the United States, Washington law applies to interpretation and claims for breach of the agreement.

Consumer Rights; Regional Variations

Understanding consumer rights is paramount, and users may have additional rights under local laws. Specific provisions apply to users in regions like Australia, Canada, and Germany/Austria, outlining their rights and guarantees.

Warranty and Liability

The software is licensed "as-is," and users bear the risk of its use. Microsoft disclaims express warranties, excluding implied warranties to the extent permitted by local laws. Liability is limited, with Microsoft and its suppliers liable for direct damages up to U.S. $5.00.


In conclusion, a nuanced understanding of the Microsoft Visual Studio Code License Agreement is crucial for developers. Compliance with these terms ensures a seamless and legally sound development environment. This comprehensive guide serves as a roadmap for developers navigating the intricacies of the license, fostering a productive and compliant coding experience.


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