SOFTWARE LICENSEC
SOFTWARE LICENSE
A SOFTWARE license is a document that provides legally binding guidelines for the use and distribution of SOFTWARE
Software licenses typically provide end users with the right to one or more copies of the software without violating COPRIGHTS. The license also defines the responsibilities of the parties entering into the license agreement and may impose restrictions on how the software can be used. Software licensing terms and conditions usually include fair use of the software, the limitations of liability, warranties and disclaimers and protections if the software or its use infringes on the intellectual property rights of others.
Software licenses typically are either properity, free or open sourse, the distinguishing feature being the terms under which users may redistribute or copy the software for future develepment or use.
See also: end user license agreement (EULA)
TYPES OF SOFTWARE LICENCE
1. Public Domain License
When software is defined as being in the public domain, anyone is free to use and modify the software without restrictions. This is a “permissive” license that allows adopting the code into applications or projects and reusing the software as desired.
For many reasons, businesses must exercise caution when adopting public domain software in projects or other important applications:
- Public domain software may not always adhere to best coding practices or may not be up to standards of secure software that the application requires.
- Software that does not fall under specific licensing terms is not always public domain code. Be sure the software is truly public domain before copying, reusing, or distributing it.
2. GNU/LGPL — GNU Lesser General Public License (LGPL)
Under an LGPL license, developers have rights to link to open source libraries within their own software. Resulting code can be licensed under any other type of license — even proprietary — when projects are compiled or linked to include an LGPL-licensed library.
The caveat is that if any part of the library is copied into the code or modified, the terms of the original LGPL license will apply to the developed code that used the library.
3. Permissive
This type of license is one of the most common and popular among open-source software licenses. Under a permissive license — also referred to as “Apache” or “BSD style” — there are few restrictions or requirements for the distribution or modifications of the software. Another variation of a permissive software license is the “MIT” license.
Variants in permissive licenses include differences in requirements for preserving license notices and copyrights for the software, as well as how the software may be used (commercial or private), trademark requirements, and other stipulations.
4. Copyleft
This license’s terms are restrictive — known as reciprocal licenses. Under the terms of a copyleft license, the licensed code may be modified or distributed as part of a software project if the new code is distributed under the same software license.
This means that if the code included in the software product was specified to be for “personal use only,” the new product being distributed must carry that same designation/restriction.
Since the original software included with the new project allowed modifications and distribution, this may not be the best license for software developers because the resulting code must also carry the copyleft license type — including the availability of the source code.
5. Proprietary
These software licenses make the software ineligible for copying, modifying, or distribution. This is the most restrictive type of software license, protecting the developer or owner from unauthorized use of the software.
What Is a Software License Agreement?
A software license agreement is a legal document that stipulates several key conditions between a software company or developer and a user to allow use of the software.
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These conditions are designed to protect the developer’s intellectual property rights and to limit claims against them for potential damage resulting from use of their software. In some cases, pricing and terms of payment may also be included, though this is often covered in a separate document. The primary purpose of the agreement, however, is to provide detailed ground rules for use of the software:
- Where the software may be installed and how many instances may be installed.
- How the software can be used.
- Whether the software may be copied, modified, or redistributed.
- Any copyrights that apply to the software.
- Ownership of the software — most often specifying that the provider retains all rights of ownership.
- Duration of the terms of the agreement.
- What constitutes correct usage of the software.
What Are Software Licenses Used for?
Developers release software for a number of reasons, whether it be to demonstrate a new idea, provide benefit to as many people as possible, or for financial and economic gain. In order to ensure that all parties involved in the process are able to benefit from the software, the terms and conditions for its use must be clearly defined.
These terms and conditions are expressed as a licensing agreement. Software licenses are critical for software providers and users alike for many reasons:
- Written authority for use of software — protects business users and individuals from liability and copyright infringement claims
- Clarification of the number of eligible users of the software
- Definition of what is included — maintenance, upgrades, support
- Warranty agreements and problem mediation process
- Distribution permission and limitations
- Use rights, such as copying or modifications
- Copyright definition, including software and any documentation
- Dates — for installation, training, support assistance, and license duration
- Termination terms, penalties, financial liabilities
- Any performance guarantees and remedies
Software licenses define the complete agreement between the licensor and licensee. The goal is to clarify the relationship from both a legal and technical viewpoint, so there are no surprises or guesswork regarding responsibilities while the agreement is in effect.
For mobile software, the license terms state how much of the user’s sensitive personal data stored on the device an application vendor is permitted to access. These agreements are designed to protect personal information such as financial statements, location, or health data and prevent its misuse.
How Much Does a Software License Cost?
Software license pricing varies widely, depending on the type of software, how it is provided, and the supplier’s cost to develop the software. SaaS providers typically provide a subscription model where the charge is based on the number of users. This grants businesses a great deal of cost control and flexibility.
Software license pricing will vary greatly among software providers that offer complete on-premises business solutions as opposed to those providing open-source objects for building internal applications and web functions. While these costs may seem unnecessary, much like an insurance policy, it will provide protection when you actually need it.
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