Licensing Types Defined

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Licensing Types

Software Licensing Overview

A software license is a legally binding agreement that specifies the terms of use for an application and defines the rights of the software producer and of the end-user. Software licensing can be a confusing subject. There are different types of licenses and licensing contracts, and different vendors may use different terms to describe their licenses. Here are some key terms that will give you an understanding to various licensing types.

Licensing for Multiple Users and Labs:

Volume Licenses: Allows the Licensee to install the software on a certain number of computers. The licensee usually has to satisfy a minimum purchase requirement and obtains reduced prices in exchange. When purchasing the licenses, the licensee usually receives one copy of the media and documentation with the option of purchasing more.

Concurrent Use License: This license type requires that you purchase licenses for the maximum number of people who will be running the software simultaneously. It is permissible to install the software onto multiple machines as long as the number of computers using the software at the same time does not exceed the number of licenses which you have purchased. Concurrent use licenses are usually used in conjunction with "license manager" software that prevents the number of licenses from being exceeded. Campus software is usually purchased “concurrently” as it allows additional flexibility in software use.

Workstation Licenses- Per Seat (Machine): Licensed per machine/seat – This license requires that you purchase a license for each client computer and/or device where access to services is needed. These are licenses that permit the installation of an application on a single computer. You may not install the software on more than one machine unless you purchase a license for each additional machine. Most workstation license agreements allow you to make a single backup copy of the software as long as that backup copy is used only to restore the software onto the same machine, or a separate machine if the software is removed from the original computer.

Network/Multi-user Licenses- Server (Network): Licensed per server – This license type requires that you have a single copy of the software residing on the file server. With Per Server licensing, a specified number of CALs are associated with a particular server. The number of devices that can legally access that server simultaneously is limited in Per Server licensing to the number of CALs purchased for that particular server.

Site/Enterprise: Site Licenses-or Unlimited: Site licenses permit the use of software on any computer at a specified site. Unlimited site licenses allow the installation of software on any number of computers as long as those computers are located at the specified site. Some site licenses permit the installation on computers owned by a particular entity (such as a university) regardless of the physical location. Some vendors refer to their licenses as site licenses but restrict the number of computers on which the software may be installed. Typically, these licenses are individually negotiated with the publisher and vary widely in their provisions.

Per Processor: Under the Per Processor model, you acquire a Processor License for each processor in the server on which the software is running. A Processor License usually includes access for an unlimited number of users to connect. You do not need to purchase additional server licenses, CALs, or Internet Connector Licenses.

Other Licensing Terms:

End User License Agreement (EULA): EULAs are the agreements that software users accept at beginning or end of each software installation accepting the terms under which the end-user may use the software. Campus agreements with software organizations or vendors often take the form of contracts between the organization and the software publisher or vendor, and specify the terms of use for all users from the organization, thereby superseding any EULAs which may come with the software.

General Public License-Freeware License: This license type is offered as freeware by the author and does not require paying any fee for use. These are agreements under which much "open source" software is licensed. End users may do things like change the source code, but any refinements of the software must also be made available under a GNU GPL license. Often referred to as "free, copy left" licenses, the software may or may not be distributed for a fee - "free" refers to the ability of users to change and distribute modifications of the software, not to cost. See the GNU General Public License web page for more information.

Non-perpetual licenses -Subscription License: Allows the user to use the software for a specified time period. At the end of the term the user has several options: (1) renew the subscription; or (2) purchase a perpetual license at a discounted cost; or (3) remove the software from the computer. This license usually includes technical support and access to upgrades and patches released during the term of the subscription. These are licenses that "lease" the software for use for a specified period of time, usually annually or sometimes bi-annually. 

Perpetual License: Allows the customer to install and use the software indefinitely without requiring a recurring fee for continued use. Most software that individuals buy for use on their home computers are perpetual licenses.

Proprietary License: Most software licenses are "proprietary" licenses, meaning the software publisher grants a license to use one or more copies of software, but that ownership of those copies remains with the software publisher. The user must accept the license before they are permitted to use the software.

Secondary Use: Allows the licensed end user to use the software on a second computer.

Shareware License: This is a license to use software for a trial period and then, if you continue to use the software, you must pay a shareware fee or cease using the software.

Student Use: This type of licensing generally allows students to use the software as long as they are students of an educational institution. Students are generally required to uninstall software upon leaving the educational institution.

Subscription/Maintenance: This is an agreement between the license holder and the software developer that allows the user to obtain all updates or upgrades for software during the term of a contract. This is usually purchased in addition to a license and at the same time as the license. Subscription/Maintenance is usually renewable at the conclusion of the term of the contract. Some license agreements allow the user to purchase "maintenance" or "software assurance" along with the original license fee, which entitles the user to receive new versions of the software for one to two years until the maintenance agreement expires.

Upgrade License: This license is acquired when a user has a previously acquired software license and would like to move up to a newer version. This is not the same as a maintenance or subscription agreement. The previous version becomes void and you cannot transfer the previous version to another user.

Work-at-Home Rights: Allows Faculty/Staff to use software at home. This is effective for as long as the primary work computer is licensed and as long as the person is an employee. Termination of employment also terminates this benefit.

Available Software