<PAGE>
 
                                                                   EXHIBIT 10.29
CONFIDENTIAL TREATMENT REQUESTED   


                          METATOOLS SOFTWARE LICENSE

LICENSEE:           Prisma Express Distributionsgesellschaft GmbH
                    Neumann-Reichardt Strasse 27, Haus 14
                    22013 Hamburg, Germany

METATOOLS SOFTWARE PRODUCT LICENSED:  KPT 3.0 / KPT Bryce /KPT Vector Effects /
                                      KPT Final Effects / Convolver /
                                      PowerPhotos / Kai's Power Soap Special
                                      Edition and All future products and
                                      upgrades created by MetaTools

DELIVERY REQUIREMENTS:                Gold Master

TERRITORY:          Exclusive rights for Germany, Austria & Switzerland in all
                    languages. During the term of this Software License,
                    MetaTools shall not authorize another distributor or
                    contract with another Licensee for marketing or selling of
                    the Software in the exclusive territory, except as part of
                    an international OEM license as to which Licensee shall be
                    made aware and as to which Licensee shall receive **% of
                    MetaTools revenue derived from that portion of such an
                    international OEM license which is directly attributable to
                    the Territory. Packaging of the Software shall contain a
                    sticker or be labeled "Not for Export Outside of the
                    European Union."

TERM:               December 30, 1996 to June 30, 1998 and the 30-day right of
                    first negotiation for a further extension of the term, such
                    negotiations to commence no later than November 1, 1997.

ROYALTY PER COPY OF METATOOLS PRODUCT:  As to all listed products currently
                    offered in the Territory, Licensee shall pay to MetaTools in
                    US Dollars amounts equal to [**]% of the lowest price at
                    which Products are currently offered in the world; [*****].
                    In this connection Licensee agrees to continue to supply
                    Product to MetaTools existing customers at the current
                    prices to such customers of which MetaTools informs Licensee
                    in writing. This obligation shall not apply to Kai's Power
                    Soap Special Edition or future products. As to Kai's Power
                    Soap Special Edition, Licensee shall pay to MetaTools the
                    sum of $[**] per copy sold in the Territory. Future product
                    royalties shall be agreed on.


[*] - Confidential treatment requested
<PAGE>
 
MINIMUM GUARANTEE OVER TERM:  $[*****] for the period through December 31, 1997
                    payable as noted below, PLUS a further Guarantee for the
                    period January 1, 1998 - June 30, 1998 to be agreed upon no
                    later than October 1, 1997 as a condition of the
                    continuation of the Term for such six month period.

PAYMENT SCHEDULE:   $[*****] within 30 days of signing; $[*****] on or before
                    March 1,1997; $[*****] on or before June 1, 1997; $[*****]
                    on or before September 1, 1997; $[*****] on or before
                    December 1, 1997

PRODUCT SUPPORT:    All technical support on Software sold in the Territory
                    shall be Licensee's responsibility

MANUFACTURING:      MetaTools will assist Licensee in contracting with the
                    manufacturer (Stream International) with no MetaTools markup

REPORTING           Licensee will provide MetaTools with detailed monthly
                    shipment reports and royalty payments if due. MetaTools will
                    provide and accept Registration Cards and share the list
                    with Licensee

MARKETING:          MetaTools will provide Licensee digital media of all
                    Software related sales, marketing and support items it
                    generates at no charge. Licensee shall make available to
                    MetaTools for use outside the Territory all Software related
                    sales, marketing and support items it generates at no
                    charge.

METATOOLS TRADEMARKS LICENSED:  METATOOLS / Kai's Power Tools / KPT / Kai's
                                Power Soap

Agreed, subject to METATOOLS Standard Terms and Conditions attached as Exhibit A
to Software License dated June 28, 1996 between METATOOLS and Licensee's
affiliated company, Up To Date, countersigned by Licensee's representative on
the date hereof.

Dated:  December 30, 1996

Licensee /s/Prisma Express Distributionsgesellschaft GmbH  
         ------------------------------------------------  
METATOOLS /s/MetaTools, Inc.
          ------------------



[*] - Confidential treatment requested
<PAGE>
 
Exhibit A

                    METATOOLS STANDARD TERMS AND CONDITIONS

         The following terms and conditions shall prevail except if in
conflict with provisions set forth in the attached METATOOLS Software License.

1. Definitions.

(a) "METATOOLS Software" shall mean the German and specified foreign language
object code versions of the software products listed on the attached METATOOLS
Software License, and upgrades and all future products released during the term,
provided in the form and media set forth on the attached METATOOLS Software
License, and any additional specified foreign language versions of such
METATOOLS Software subsequently developed by METATOOLS when available. The
parties may mutually agree to amend the attached METATOOLS Software License in
writing from time to time in the manner provided in section 14(a) below.

(b) "METATOOLS Documentation" shall mean any and all information relating to the
METATOOLS Software, whether in machine readable or interpreted, pictorial,
graphic, or other written form, including without limitation, narrative and
instructional documentation, users guides, operational guides, and training
guides generally provided by METATOOLS to end-users, together with METATOOLS
then current standard end-user license agreement ("METATOOLS End-User License
Agreement").

(c) "METATOOLS Product" shall mean one copy of the METATOOLS Software together
with a set of METATOOLS Documentation, and accordingly, "METATOOLS Products"
shall refer to multiple copies of the METATOOLS Software together with an
applicable number of sets of METATOOLS Documentation.

2. METATOOLS License Grants.

(a) METATOOLS grants to Licensee an exclusive, non-transferable license, within
the territory and during the term set forth on the attached METATOOLS Software
License, to distribute license and promote and advertise METATOOLS Products
subject to the conditions set forth herein.  Additionally,  subject to the
conditions set forth herein, METATOOLS grants to Licensee, within the territory
and during the term set forth on the attached METATOOLS Software License, a
license to enter into agreements with third party original equipment
manufacturers to bundle the METATOOLS Products with manufactured hardware.

(b) Licensee expressly acknowledges that it (i) may not sublicense any of its
rights hereunder, (ii) bundle or combine METATOOLS Products with software
products which are not proprietary to or licensed for use by Licensee, without
the prior written consent of METATOOLS.

(c) omitted

(d) All intellectual property rights in or relating to the METATOOLS Product,
including without limitation, the METATOOLS Software and METATOOLS Documentation
and any modified versions thereof, including without limitation patents,
copyrights or trademarks, are and shall remain the exclusive property of
METATOOLS. Licensee represents and warrants to METATOOLS that it shall not
attempt to translate, modify, decompile, disassemble or attempt to obtain the
source code for the 
<PAGE>
 
METATOOLS Software or METATOOLS Documentation, and that all source code of the
METATOOLS Software constitutes proprietary trade secrets of METATOOLS. Licensee
shall not encumber the METATOOLS Product or any portion thereof during the term
of the METATOOLS Software License. Except as otherwise provided by this
agreement for Goo in Germany, Austria and Switzerland, METATOOLS retains the
right to market and distribute METATOOLS Products worldwide through retail,
distribution, and any other marketing channels as METATOOLS deems appropriate.
Except as otherwise provided by this agreement for Goo in Germany, Austria and
Switzerland, nothing in the METATOOLS Software License shall prevent METATOOLS,
or its agents, representatives or assigns, from entering into a similar
agreement with any other party, and the METATOOLS Software License shall not be
construed to restrict either party from engaging in any activities with respect
to competitive products.

(e) Licensee shall at its own expense manufacture METATOOLS Products and
Licensee agrees that the packaging will display the METATOOLS End-User License
Agreement in a manner such that it can be easily identified by an end-user, and
will also include one registration and one upgrade card in such form as may be
provided by METATOOLS from time to time, provided, METATOOLS failure to supply
Licensee with the necessary registration and/or upgrade cards shall not preclude
Licensee from distributing METATOOLS Products.

(f) Within ten (10) days from the Effective Date of the METATOOLS Software
License, METATOOLS shall deliver to Licensee an electronic version or master
copy of the METATOOLS Software and METATOOLS Documentation as set forth on the
attached METATOOLS Software License. Licensee shall use such master copy/set to
manufacture/reproduce the METATOOLS Product in accordance herewith. The
METATOOLS Software shall be manufactured onto media of equal or better quality
than those generally used by METATOOLS. Licensee shall have the right to
reformat and print the METATOOLS Documentation but not alter its content and any
reformatted METATOOLS Documentation shall be equal to or of better quality than
the originally submitted METATOOLS Documentation. Within one week of Licensee's
commencement of production of the licensed software, Licensee shall provide
METATOOLS with ten (10) copies of METATOOLS Product, and any related materials
produced in accordance herewith, including without limitation, product
packaging, inserts and advertisements, for purposes of inspection, evaluation
and approval. METATOOLS shall have the right to inspect any and all copies of
the METATOOLS Software and METATOOLS Documentation manufactured or reproduced by
Licensee hereby and shall have the exclusive right to prohibit distribution of
any copies that METATOOLS reasonably deems unsuitable.

3. Royalties

(a) Licensee shall pay to METATOOLS a royalty specified on the attached
METATOOLS Software License for each copy of the METATOOLS Software shipped by
Licensee hereunder in accordance with generally accepted accounting principles,
provided, intra-company and inter-company shipments between Licensee and
Licensee's subsidiaries and/or affiliates shall not give rise to any royalty
obligations.  As a non-refundable guarantee and advance against said royalties,
Licensee shall pay to METATOOLS the sums specified on the attached METATOOLS
Software License as and when so specified.

(b) Licensee shall provide an initial report containing the information set
forth below to METATOOLS within forty-five (45) days after the end of the
calendar quarter during the Term of the METATOOLS Software License. Thereafter,
Licensee agrees to provide quarterly reports to METATOOLS within forty-five (45)
days after the end of each calendar quarter. Such reports shall be in ASCII
format on diskette, accompanied by a hard copy, and shall set forth the number
of copies of METATOOLS 
<PAGE>
 
Product produced during the reporting period, the number of METATOOLS Products
distributed during the reporting period, and the appropriate royalty fee
calculation for the reporting period, including amounts which must be withheld
from payment to METATOOLS under applicable taxation laws. The report shall be
signed by a duly authorized representative of the party submitting such report.
ALL APPLICABLE ROYALTIES SHALL BE DUE AND PAYABLE IN FULL AT THE TIME SUCH
QUARTERLY REPORTS ARE DUE. In the event that no Products are produced and
distributed by either party during any quarter, the party failing to produce any
Products shall so indicate in the quarterly report.

(c) Each of the parties respective obligations hereunder are exclusive of any
shipping charges, federal, state, municipal or other governmental taxes, duties,
excise taxes, tariffs, or withholdings now or hereafter imposed on the
production, storage, sale, transportation, import, export, licensing,
distribution, or use of the Products or any portion thereof. Such charges,
together with any penalties and interest thereon, shall be paid by the
respective parties, or in lieu of payment of any tax, each party shall provide
an exemption certificate acceptable to the other party and the applicable
authority.

(d) During the term of the METATOOLS Software License and for a period of two
years thereafter, Licensee agrees to keep all usual and proper records and books
of account and all usual and proper entries relating to the Products. Within
ninety (90) days after receipt of the quarterly written report described above,
METATOOLS, upon ten (10) days prior written notice, may cause an audit to be
made of the applicable records of Licensee relating to the Products in order to
verify statements issued by Licensee. Prompt adjustment shall be made to
compensate for any errors or omissions disclosed by such audit. Any such audit
shall be conducted by a corporate representative of METATOOLS during regular
business hours at Licensee's offices and in such a manner as not to interfere
with the normal business activities of Licensee and will not include access to
Licensee's cost or profit information.

4. Term and Termination.

(a) The term of the METATOOLS Software License shall be that specified on the
attached METATOOLS Software License.

(b) Either party may terminate the METATOOLS Software License (i) fourteen (14)
days after providing written notice that a material breach of the METATOOLS
Software License has occurred, if such breach has not been cured within such
period.

(c) METATOOLS may terminate the METATOOLS Software License, on thirty (30) days
written notice if Up to Date (i) becomes insolvent, (ii) files a voluntary
petition for bankruptcy, or (iii) ceases to do business.

(c) In the event of termination or expiration of the METATOOLS Software License,
Licensee is permitted to continue distributing any Products remaining in its
inventories as of the date of termination or expiration in accordance with the
terms and conditions of the METATOOLS Software License for a period of sixty
(60) days from the date of termination or expiration.

(d) In the event of termination or expiration of the METATOOLS Software License,
Licensee shall immediately return to METATOOLS the master diskettes containing
the METATOOLS Product and/or METATOOLS Documentation and any information of
METATOOLS marked "Confidential," "Proprietary," or containing similar markings,
including any copies thereof, together with a letter signed by a duly authorized
representative of Licensee certifying that all such information has been
returned.
<PAGE>
 
(e) In the event of termination of the METATOOLS Software License due to a
material breach by METATOOLS, METATOOLS shall refund to Licensee that portion of
the Guaranteed Minimum Royalty that has not been fully recouped by Licensee, and
to the extent that the entire Guaranteed Minimum Royalty has not been paid, no
further payments shall be due for Licensee to METATOOLS.  In the event of
termination of the METATOOLS Software License due to a material breach by
Licensee, the entire amount of the Guaranteed Minimum Royalty shall become
immediately due and payable to METATOOLS, and no amount of the Guaranteed
Minimum Royalty already paid shall be refunded, notwithstanding the fact that it
has not been fully recouped by Licensee.

5. Warranty: Disclaimer.

(a) omitted

(b) METATOOLS warrants the METATOOLS Product directly to the end-user only in
accordance with the terms and conditions set forth in the METATOOLS End-User
License Agreement. METATOOLS MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO THE
METATOOLS PRODUCT TO LICENSEE OR ANY OF ITS RE-SELLERS.

(c) EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 6, LICENSEE AND METATOOLS
DISCLAIM ALL OTHER WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WITHOUT
LIMITATION, IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND
MERCHANTABILITY.  METATOOLS' SOLE LIABILITY FOR THE FAILURE OF ITS SOFTWARE TO
OPERATE IN ACCORDANCE WITH THE SPECIFICATIONS INCLUDED WITH THE SOFTWARE
(DETERMINED IN METATOOLS DISCRETION) SHALL BE REPLACEMENT WITH A FUNCTIONING
COPY OF THE SOFTWARE OR A REFUND OF ITS PURCHASE PRICE.

6. Indemnity.

(a) omitted

(b) METATOOLS shall indemnify and hold Licensee harmless from and against and
defend any claim, suit, or proceeding, and pay any settlement amounts or damages
awarded by a court of final jurisdiction, arising out of claims by third parties
that the METATOOLS Product infringes any copyright, patent, or trademark,
provided that Licensee promptly notifies METATOOLS in writing of any such claim,
suit, or proceeding, permits METATOOLS to control the defense or settlement
thereof, and cooperates in the defense or settlement thereof. Licensee shall
have the option of being represented by separate legal counsel at its own
expense. METATOOLS shall have the right to demand that Licensee remit to
METATOOLS any METATOOLS Product in Licensee's inventory which is the subject of
a claim of infringement at any time following receipt of notice of such claim,
such remittance to be made at METATOOLS'S direction and expense; and immediately
upon notice of any claim, suit, or proceeding described above, Licensee shall
discontinue distributing the METATOOLS Product, or the portion thereof, which is
the subject of the claim of infringement. METATOOLS shall have no obligation
under this Section 7(b) with respect to any claim of infringement of proprietary
rights based upon any modification of the METATOOLS Product by Licensee or the
combination, operation, or use of the METATOOLS Product with materials or
products other than those set forth in the METATOOLS Software License.
<PAGE>
 
7. Limitation of Liability.

(a) In the event that Licensee determines that an error exists in the METATOOLS
software, METATOOLS shall use its best efforts to provide a corrected version of
the software to Licensee in a timely manner, and such shall be the extent of
METATOOLS' liability.

(b) UNDER NO CIRCUMSTANCES SHALL EITHER PARTY'S LIABILITY TO THE OTHER HEREUNDER
INCLUDE, NOR SHALL EITHER PARTY BE LIABLE FOR, SPECIAL, INDIRECT, INCIDENTAL,
CONSEQUENTIAL, TORT, OR COVER DAMAGES, INCLUDING WITHOUT LIMITATION, DAMAGES
RESULTING FROM DELAY OF DELIVERY OR FROM LOSS OF PROFITS, DATA, BUSINESS, OR
GOODWILL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OR IS AWARE OF THE
POSSIBILITY OF SUCH DAMAGES.

8. Copyrights and Trademarks.

(a) Licensee acknowledges that METATOOLS is the exclusive owner of the
trademark(s) designated on the attached METATOOLS Software License attached
hereto and incorporated herein, and METATOOLS grants Licensee the right to use
the trademark(s) solely as set forth herein. Licensee agrees that it will do
nothing inconsistent with METATOOLS ownership of the trademark(s) and shall not
use such trademark(s) in a disparaging manner. Licensee agrees that the nature
and quality of all uses of METATOOLS trademark(s) by Licensee shall conform to
standards set by METATOOLS from time to time, and Licensee shall include correct
trademark notices on advertisements, sales literature, re-seller materials,
other marketing materials, and packaging relating to the METATOOLS Product.
Licensee shall provide samples of any and all such materials or packaging to
METATOOLS for its prior approval. Licensee shall ensure that all METATOOLS
Products distributed hereunder contain applicable copyright and trademark
notices as specified by METATOOLS from time to time.

9. Confidentiality and Product Security.

(a) Each of the parties shall retain in confidence and not disclose, and may
only use pursuant to the METATOOLS Software License, any and all written
information provided to it by the other party and labeled as confidential or
proprietary and any oral or visual information identified at the time of
disclosure as confidential or proprietary (all of which such information
constitutes trade secrets of its respective owner), unless the information
sought to be disclosed or used (i) is published or otherwise publicly known at
the time of its disclosure to either party or becomes publicly known through no
fault of the party making such disclosure, (ii) is lawfully received by either
party from a third party not bound in a confidential relationship with METATOOLS
or Licensee, (iii) was already known by METATOOLS or Licensee at the time of
disclosure, or (iv) is required to be disclosed under any law, governmental rule
or regulation or court order; provided, however, that before making any use or
disclosure in reliance on one of these exceptions, the party making such
disclosure shall give the other party at least ten (10) business days' prior
written notice specifying the applicable exception(s) and circumstances giving
rise thereto.

(b) For five (5) years from and after the date of the METATOOLS Software
License, termination or expiration notwithstanding, and without limiting the
scope of the preceding paragraph, each party further agrees not to disclose to
any third party any of the terms or provisions of the METATOOLS Software
License, including without limitation, pricing terms, or information obtained
from the other party concerning operations, business plans or other proprietary
or confidential information, including without limitation, any proprietary
technical information, without first obtaining the advance written approval of
the other party, except as may be required by law or government regulation.
<PAGE>
 
Notwithstanding the foregoing, either party may disclose the relationship
established by the METATOOLS Software License when required by law or in
response to a judicial or administrative process. Each party shall take
reasonable steps to safeguard the confidentiality of any information so
disclosed by such means as appropriate protective orders.

(c) METATOOLS and Licensee may make a joint announcement on or after a date
mutually agreed upon with respect to the METATOOLS Software License and/or the
Product. Prior to such announcement, if any, neither party shall make any
announcement regarding the METATOOLS Software License or the subject matter
thereof without the other party's prior written consent.

(d) The parties hereby agree that any breach of Sections 10(a) or 10(b) would
constitute irreparable harm, and that a party shall be entitled to seek specific
performance or injunctive relief to enforce Sections 10(a) or 10(b) in addition
to whatever remedies such party may otherwise be entitled to at law or in
equity.

10. Export.

METATOOLS and Licensee each acknowledge that the transfer of certain commodities
and technical data is subject to United States laws and regulations controlling
the export of such commodities and technical data, including all Export
Administration Regulations of the United States Department of Commerce. These
laws and regulations, among other things, prohibit or require a license for the
export of certain types of technical data to certain specified countries.
METATOOLS and Licensee agree and represent that they will each comply with all
United States laws and regulations controlling the export of commodities and
technical data, as such laws and regulations may apply to the Products or Host
Products, and each party shall be solely responsible for any violation of such
by it, and will defend and hold the other party harmless in the event of any
legal action of any nature occasioned by such violation.

11. Assignment.

Neither the METATOOLS Software License nor any interest herein may be
sublicensed or assigned, in whole or in part, by either party hereto without the
prior written consent of the other party, except that without securing such
prior written consent, either party may assign the METATOOLS Software License to
a successor to all or substantially all of its business. Each party may request
that any permitted successor or assign affirm in writing its assumption of all
liabilities and obligations of the assigning party to the non-assigning party.

12. Notices.

All notices requests provided for in the METATOOLS Software License shall be
given in writing and shall be effective when either served by personal delivery
or upon receipt via United States mail, return receipt requested, postage
prepaid, or sent by facsimile transmission at the addresses first set forth
above, or such other address as the parties may designate in accordance
herewith:

          METATOOLS, INC.
          6303 Carpinteria Ave.
          Carpinteria, CA 93013
          Attn. Legal Department

If to Licensee:  to that address set forth on the attached METATOOLS Software
License.
<PAGE>
 
13. Miscellaneous.

(a) Further Assurance: The parties agree to execute, acknowledge and deliver all
such further instruments, and to do all such other acts, as may be necessary or
appropriate in order to carry out the intent and purposes of the METATOOLS
Software License.

(b) Merger and Amendment: The METATOOLS Software License constitutes the entire
understanding of the parties with respect to the subject matter hereof and
merges all prior communications, understandings. and agreements, whether written
or oral. It shall not be modified except by a subsequently dated written
amendment of the METATOOLS Software License, signed on behalf of both parties by
their duly authorized representatives.  All Exhibits hereto shall be signed and
dated and shall constitute a part of the METATOOLS Software License.

(c) Binding Effect. Subject to the limitations set forth in the METATOOLS
Software License, the METATOOLS Software License shall inure to the benefit of
and be binding upon the parties, their successors, and permitted assigns. Any
signed counterpart of the METATOOLS Software License shall be deemed originals.

(d) Severability. If any provisions of the METATOOLS Software License shall be
held by a court of competent jurisdiction to be contrary to law or public
policy, or otherwise unenforceable, the remaining provisions shall remain in
full force and effect.

(e) Waiver. No term or provision hereof shall be deemed waived and no breach
consented to or excused, unless such waiver, consent, or excuse shall be in
writing and signed by the party claimed to have waived or consented. In the
event either party consents, waives, or excuses a breach by the other party,
such shall not constitute a consent to, waiver, or excuse of any other different
or subsequent breach whether or not of the same kind as the original breach.

(f) Governing Law. THE METATOOLS SOFTWARE LICENSE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, EXCLUDING ITS
CHOICE OF LAW RULES. In any dispute relating to the METATOOLS Software License,
the parties hereto submit themselves to the jurisdiction of the tribunals of the
State of California.

(g) Relationship of Parties. The parties hereto are independent contractors and
neither party is an employee, agent, partner, or joint venturer of the other.
Neither party shall have the right to bind the other to any agreement with a
third party or to incur any obligation or liability on behalf of the other
party.

(h) Authority. Each of the parties hereto represents and warrants to the other
that (i) it has full power and authority to enter into the METATOOLS Software
License and perform its obligations hereunder, and (ii) all necessary corporate
action has been duly taken to authorize the individual signing below to sign the
Agreement.

(i) Survival. The provisions of Sections 1, 4, 5, 6, 7, 8, 9, 10, 11 and 14
shall survive the termination or expiration of the METATOOLS Software License
and continue according to their terms.