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  > Hardware & Software
Understanding Licenses
   
spacer Introduction

When installing software, you'll almost always be presented with a EULA (End User License Agreement) which you must agree to by clicking a button before installation can continue. It's a good idea to know what you're agreeing to, so let's take a look at the following key aspects of software licenses as they relate to you, the user.

  • Coverage - Some licenses cover one computer, others one user, and still others cover larger groups of user and computer combinations.
  • Pricing Structure - The cost of adding additional users or computers to your license may be cheaper than simply purchasing multiple copies of the same software package.
  • Rights of Use - Software licenses grant you certain rights as a user, as well as restricting certain uses of the software.
  • Rights Granted to Issuer - It is becoming more prevalent for some licenses to provide the software company certain rights relating to software you install on your own computer.
  • Coverage

    If you don't have a volume or site license (covered under Pricing Structure below), you likely have either a single-user or a single-computer license. A single-user license generally allows you to install the software on more than one computer (for example, your home computer and your work computer), provided you're only using one copy of the software at any given time. Licenses for a single computer mean that you can install the software on one computer only.

    Pricing Structure

    Single-user or single-computer licenses are generally very straightforward. However, if you plan on using a software package on multiple computers in your organization, you may want to consider obtaining a volume or site license.

    These licenses are generally provided by software companies as a means of making software piracy less attractive. Generally for a resonable fee, you can obtain a 5-user license (for example) at a cost only 150% or 200% of the price of a single-user license.

    Recently some software vendors have been experimenting with "subscription model" pricing for software. Essentially, you don't own the software, but you're renting it for a monthly or annual fee. Read the license agreements for such software thoroughly before purchasing if possible.

    First, it's important to note that although licensing agreements declare a certain set of rights for those who purchase and use the software, there is currently much debate about how much validity many of these licenses have in light of US government laws regarding Fair Use of copyrighted works.

    A good rule of thumb is to take a look at the rights granted and specific declarations limiting what you can do with the software. It's better to know beforehand what the software publisher intended users to do with the software, as some of them are very aggressive in persuing violations of license agreements.

    Rights Granted to Issuer

    This is an area of increasing conflict in the world of software. Some software companies have started creating licenses that specifically authorize them to automatically access a user's machine via the Internet to gather information about software useage, automatically update software, and so on.

    Obviously, software vendors don't advertise this language, but if you're interested in finding out the details of current licenses from big software vendors, check the resources listed below.

    Final Notes

    So far we've focused on commercial software licenses. However, there are a variety of software licenses that collectively fall under the umbrella term "Open Source". Software with the GNU Public License, BSD License, or any one of several alternative Open Source licenses, is often distributed for free.

    Open Source software also provides fewer restrictions on use, as the primary purpose of the license is to spread use of the Open Sourced application. Open Source licensing terms are also generally easier to understand than commercial software licenses.

    Examples of Open Source software include the Linux and BSD operating systems, the PHP scripting language, Apache web server, and the OpenOffice suite of productivity tools.

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