SOFTWARE LICENSE
Every business uses software to manage business processes and communicate with employees, customers and vendors and for other purposes. Software products often require access to “terms and conditions” for software products when downloading or accessing programs. There are many types of software licenses with different terms, limitations and costs. Users should understand the basics of software licenses. Ensuring full understanding of responsibilities and compliance with terms and limitations is mandatory.
What Is a Software License
A software license is an agreement between the entity that created and provided an application, the underlying code or related product, and its end user. A license is a method used to protect the software developer’s intellectual property and is a text document designed to limit any rights anyone may have using it.
A software license also provides legal obligations for the distribution and use of software. This is often specified in the software license to protect the developer’s intellectual property.
Most software publications fall into one of two categories with distinct differences in how they are viewed under existing copyright laws.
Proprietary — Also known as “closed source”.
Free and Open Source Software (FOSS) — Also known as “Open Source”.
FOSS Software Licenses — The right to provide the right code along with the software design, use and modification of the software code is granted to the customer. This license is intended to grant user authority to modify the software functionality and the freedom to inspect the software code.
Types of Software Licenses
The main software licenses used to cover different types of software and business needs are classified into five categories. These cover a wide range of licensing scenarios, from free software to paid commercial software. Between these two ranges are three categories that apply to different types of open source projects: GNU/LGPL, permissive, and copyleft.
5 Types of Software Licenses.
1. PUBLIC DOMAIN LICENSE
When software is in the public domain, anyone is free to use and modify the software without restriction. This is a license that allows applications or projects to use the code and reuse the software as needed. Public domain software may not adhere to coding best practices or meet the standards of security software required by the application. Software that does not require specific license terms is not always public domain code. Before copying, reusing or distributing software it is imperative to ensure that it is truly public domain.
2. GNU/LGPL — GNU LESSER GENERAL PUBLIC LICENSE (LGPL)
Through an LGPL license, developers are entitled to link to open source libraries in their own software. When projects are created or linked to include an LGPL-licensed library, the resulting code can be licensed under any other license — even proprietary. If any part of the library is copied or modified into the code, the terms of the LGPL license apply to the developed code that used the library.
3. PERMISSIVE
This license is one of the most popular open source software licenses. Also known as ‘Apache’ or ‘BSD style’ under a permissive license. There are few restrictions or requirements on distribution or modification of the Software. Another different license here is the “MIT” license. Permitted license variants contain changes to the license notices and copyright protection requirements for the software, as well as terms about how the software can be used.
4. COPYLEFT
The terms of this license are that 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 under the terms of a copyleft license. There should be a limitation. This is not the best license for software developers because modifications and distribution of the original software with the new project is allowed. This is because the resulting code is in the source code, so copies must also carry the left license type.
5. PROPRIETARY
These software licenses prohibit the software from being copied, modified, or distributed, and this is the most restrictive type of software license that protects the developer or owner from unauthorized use of the software.
How does Software License Work
New users who do not own the software usually enter into an end user license agreement that includes the legal definitions of the relationship between the licensee and the licensee. The EULA is an agreement that confirms the buyer’s rights to install and use the software.
Every EULA contains a clause that mitigates when its terms are activated by an end user. Cloud-based applications such as Software as a Service often include license information in concert:
1.Monthly or annual fees per user
2.Duration of Agreement
3.Conditions for cancellation of agreement
4.Recovery of any fees if canceled in agreement
The use of software licenses is when authorities attempt to sell or distribute a software developer or firm under the brand name of a second party.
Software License Agreement
A software license agreement is a legal document between a software company or developer and a user that sets out some key terms for authorizing the use of software.
These Terms are designed to protect the developer’s intellectual property rights and limit rights against them for damages that may arise from the use of their software. Often this is covered in a separate document, but may also include pricing and payment terms. Its primary purpose is to provide detailed ground rules for using the software:
- Whether the Software may be copied, modified or redistributed.
2. Any copyrights relating to the Software.
3.Ownership of the software often referred to as the provider
4.How to use the Software.
5.Duration of the terms of the agreement.
6.What is fair use of software?
7.All rights of ownership are reserved.
Software License Cost
Software license prices vary greatly based on the type of software, how it is provided, and the supplier’s cost to develop the software. Software providers usually offer a subscription model where the fee is determined based on the number of users. Software license prices vary greatly between software providers that provide complete business solutions on premises as opposed to those that provide open source objects for building internal applications as well as web functions.
Managing software licenses and software agreements can be simplified by implementing a management tool that tracks all licenses, expiration dates, and compliance issues.