License

License is a legal instrument (usually by way of contract law, with or without printed material) governing the use or redistribution of software.

Overview

All software is copyright protected, except material in the public domain. Copyright law provides certain exclusive rights to the copyright holder, including the right to create copies or reproduce the work, and to sell those copies (including, typically, electronic copies). Software companies typically distribute their products under proprietary licenses.

Types of licenses

There are several types of software licenses:

• Proprietary licenses gives the licensee the right to use the software but ownership remains with the software publisher. The licensee is not allowed to modify or redistribute the software.

• Free licenses grants the licensee the right to modify and redistribute the software. These licenses are also called open-source licenses.

• Shareware is a proprietary software that is provided to users on a limited basis and only for a certain evaluation period.

• Freemium is a business model that offers both complimentary (free) and extra-cost (premium) services. It's a way to let users try the basic features of the software, with the hope that they will eventually pay for the premium features.

Licensing terms

Software licenses typically contain provisions which allocate liability and responsibility between the parties. In enterprise and commercial software transactions these terms often include limitations of liability, warranties and warranty disclaimers, and indemnity if the software infringes intellectual property rights of others.

See also

• Copyright
• Intellectual property
• Software licensing
• Open-source license
• Proprietary software

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