Software License Agreement

Software License Agreement

A software license is a legal binding agreement specifying the terms of use of an application or software and defines the rights of the producer of the software and the end user of the application. Many types of licenses are used by different software vendors in the world today (Eymeren, 2016). These permissions depend on the kind of organization where the software is to be used. As a company’s paralegal in a software firm, you have to make a decision that will favor the client and also bring a significant level of profit to the company.

The type of software decides the kind of license to be used. In case the software is to be used at home, the best license would be perpetual license. This is a license that does not have an expiry date. Whether downloaded online or sold by local retailers, it would fit home computers correctly.

If by any chance the software is to be used in an institution, the best license would be the site license. This grant can be used by many computers if they are all within the specified site and an example can be software to be used in a university. For most valued software, to be used in organizations of high value, the best license to use is the workstation license (Eymeren, 2016). This permit cannot be used to install software on more than one computer unless a permit for both is purchased.

Concurrent licenses, those permitting the installation of software on multiple computers provided the number of machines using the software does not exceed the permissions purchased, is one license that should not be used (Eymeren, 2016). This is because smart clients will tend to take advantage of this.

Other types of licenses include proprietary license, End User License Agreements, license with maintenance and non-perpetual permits (Eymeren, 2016). However, I would not recommend all these licenses. These are because these licenses tend to push customers away and not bring as much profit to the software firm.


Eymeren, J. V. (2016). Netherlands: International Software License Agreement As Purchase Agreement under the CISG and the Exhaustion- Doctrine. Computer Law Review International17(2). doi:10.9785/cri-2016-0207

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