Understanding Licensed Software: Definitions, Types, and Legal Considerations

What is Licensed Software?

Licensed software, also known as authorized software, is a type of computer program that comes with a specific license. This license governs how the software can be used and defines the rights and obligations of both the software provider and the end-user. The license can outline the terms for use, installation, modification, and redistribution, providing clear instructions to ensure compliance and avoid legal issues.

Definitions and Types of Software Licenses

There are several distinct categories of software licenses, each with its own set of rules and restrictions. Understanding these different types is essential for users and organizations intending to utilize licensed software.

Proprietary Licenses

A proprietary license is a type of software license that grants users the right to use the software, but retains ownership of the software with the developer or software provider. Users are generally required to pay for the license to use the software, and they are not allowed to redistribute, modify, or reverse-engineer the software without explicit permission. This type of license is common for commercial software packages.

Open Source Licenses

Contrary to proprietary licenses, open source licenses allow users to access the source code, modify it, and share it with others, as long as the software remains open source. Examples of open source licenses include the GPL (GNU General Public License) and MIT License. Open source software promotes transparency, collaboration, and innovation, making it a popular choice for developers and companies.

Freeware

Freeware is another form of software that is distributed free of charge. However, the software is still owned by the original creator, and users generally do not have the right to modify or redistribute the software, except under circumstances stipulated by the license terms.

Shareware

Shareware refers to software that is distributed free of charge for a limited period, such as a trial. Users can enjoy the software during the trial period but are expected to purchase and pay for the software if they continue to use it after the trial period. This type of license encourages users to experience the software before making a decision to purchase it.

Understanding Software Licenses

The terms of a software license are crucial for both compliance and legal responsibility. When you obtain licensed software, you are agreeing to certain rules and restrictions outlined in the license agreement. Here are some key aspects of understanding software licenses:

The Nature of the License Agreement

When you obtain software, it is usually as part of a license agreement. This means you have the right to use the software but do not own it. The license may dictate the following:

The purpose of the software What you may do with the software What you may not do with the software The responsibilities or lack thereof of the actual software owner Whether you may sell or share the software with others or use it on multiple machines The duration of the license and any termination dates

In some cases, the license may provide a simple set of rules, such as in open source licenses, or a more detailed licensing key that includes specific details about the software usage.

Software Licensing Examples

Here are a couple of examples of common forms of software licensing, each with unique identifiers or keys:

Simple License

A simple license might just be a notification of the rules, such as a GPL license for open source or freeware. This is a straightforward statement that outlines the terms and conditions of the software usage.

Scheduled License

Some licenses may be tied to specific dates. For instance, a software that was licensed for a period of time might have a license key that indicates it will stop working after a certain date. A site I know of used to reset the system date backwards each time it needed to run software from an expired lease.

Complex License Key

More complex licensing keys provide detailed information about the software's usage. For example:

                 Issuer:  REC 
              Authorization:  PER2226087 
                   Producer:  REC 
               Product Name:  SPREADSHEET 
                      Units:  800 
               Release Date: 
                    Version:  7.3 
           Termination Date:  31-DEC-2000 
               Availability:  E 
                   Activity: 
                    Options:  MOD_UNITS 
                      Token: 
                Hardware ID: 
                   Checksum:  1-BGON-IAMA-GNOL-AIKO

This key provides comprehensive information about the software, such as the issuer, product name, units, version, and termination date. It also includes options and hardware-specific details. This ensures that the software is used in accordance with the intended terms.

Conclusion

Understanding the nature and types of software licenses is essential for avoiding legal issues and ensuring compliance with software terms. Whether it's proprietary, open source, freeware, or shareware, the terms of the license are binding and guide the user's rights and responsibilities.