Software license agreements
Dr Eszter Telek
IPR-Insights Consulting
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Software and related materials




executable code - on media / download from the
Internet
software documentation (user guide, operational
guide etc.) – paper / electronic
license (terms & conditions) – paper / electronic
invoice or other documentation about the
procurement (containing all relevant information
in line with the license)
SOFTWARE IS LICENSED NOT SOLD
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
License (licensing agreement)

License is a specific agreement, in which the author
authorizes the use of his work and basically the user is
obliged to pay a remuneration (license fee) therefore.

proprietary software (closed source)
free software (open source)
semi-free software



BUT irrespective of remuneration software usage
have to be licensed by the author (vendor) every
time
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Closed source software

commercial software
freeware
shareware
other

remuneration



IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Open source software



Free software
GNU GPL
Etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Forms of software licenses

Named license with unique ID




generally agreements which are concluded by the
consensus of parties
or other license confirmations (ie. belongs to a frame
contract etc.), which contains the name of the user
in this case you do not need the invoice for certifying
legal usage (but you need it for accounting purpose!)
Not named licenses



retail boxes
the agreement comes into existence by a real action
(opening the box etc.)
in this case you have to own the invoice as well
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Terms of licenses

Undefined term



perpetual license
perpetual license by divided payment
Defined term


subscription
time limited test, evaluation license etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Obligatory provisions



direct subject: detailed rights to use the
software
indirect subject: exact definition of the
work
so it is a basic requirement that the
license agreement exactly defines the
software and the right which is granted
by the author to use it
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Extent of the license

Identified number of software

pieces and measurment type








per device
per server
per processor
per user
per concurrent user
per transaction (all other type of measures besides the above)
combination of the above types (ie. per server+per device = MS
server + CAL model)
etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Rights of lawful acquirer

Rights of lawful acquirer – granted by the Directive
 specific contractual provision can exclude the
following rights
 copying, adaptation necessary for lawful use,
including error corrections
 cannot be excluded by contract
 right to create back-up copies
 right of reverse engineering
 right of decompilation
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Possible user rights...


using secondary computer
downgrade right (right to use the previous
versions)







Alternatively
Concurrently
Steps backward
new version right (right to use the latest
versions)
technical support
training
etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
... and restrictions







territorial limitations
limitation of the usable language
edition limitation
determination of the hardware
determination of the user
limitations regarding to license transfer
(affiliates, legal succession, outsourcing)
etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Miscellaneous





warranty and liability
termination of contract
governing law
arbitration
etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Supplemental agreements

Upgrade license



Update is diferrent (fix, patch, service pack)
Maintenance agreement
Support agreement
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Upgrade types





language
product (for example to change the edition)
version
competitive
User has to own the base license to the upgrade
license in order to certify legal usage. (I.e
upgrade license is an amendment of the original
license agreement.)
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Typical software licences



OEM license
FPP license
Volume license
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Big vendors – typical licensing models


Customer types
Levels





Quantity
Price
Discount
Rights and restrictions
Good and well-known example: Microsoft
licensing models
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Licensing models of Microsoft

Perpetual licenses








FPP (box)
OEM
Open Business
Select
Open Value
Open Value Company Wide
Enterprise Agreement
Subscriptions


Open Value Subscription
Enterprise Agreement Subscription
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS FPP





In the box: install kit, manual, license (in some
cases only electronic), registration form are
included
Usually you can use only one version of the
software product
Licensing terms are set out in the EULA
There is no end user identifier on the license, so
you have to own an invoice (as conclusive
document)
It’s the most expensive way of the software
procurement
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS OEM software

Software can be purchased with hardware:







Operating systems
Office (usually a special edition)
Windows Server, SBS
Usage of one version is permitted only (but there
is one exception)
The license is electronic, COA label grants the
originality
There is no end user identifier on the license, so
you have to own an invoice
Product support provided by the hardware
supplier
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS volume licensing models




Named licenses
Usage terms are set out in Product Use
Rights (PUR) document
Downgrade right
Software Assurance
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS upgrade - Software Assurance (SA)








It is used instead of earlier VUP, CUP, LUP, PUP
and UA models
You are authorized to use the latest versions until
the agreement terminates
You can order license (L) or license and software
assurance (L&SA) in Open / Select
SA is included in OV/OV CW/OVS/EA/EAS
Select customers can get SA by one-time
payment or by divided payment
Renewal is available in the case of continuity
Extra services can be provided in SA Program
http://www.microsoft.com/licensing/sa/
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Open Business & Volume





Two-year agreement
Easy program to purchase software licenses
From 5 licenses it can be required (Business)
No install kit, no manual (procurable separately)
Software Assurance can be ordered
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Select






Licensing model for enterprises, only LAR
partners sell
Min. 3-year contract
Customers’ forecast determine the discount level
Updated media are provided automatically until
the agreement terminates
Educational and evaluation licenses for all
product
Software Assurance is available
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS platform agreements - advantages

Simplified license management




The standard computers in the case of Windows, Office,
and server CALs simplifies the license inventory to the
number of PCs
Any version of the licensed software can be used
One agreement for all license
Upgrade periods can be handled easily


Contain the new version of the licensed software
Installations on demand
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Open Value





Available from 5 licenses
No minimum reorder
Monthly order (notification), annual payment
Price protection is provided from the order to the
termination of the agreement.
Types


Companywide option
Non-companywide option
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Open Value Subscription

Similar to the Open Value, but the most important
differences are:




Annual order (notification) and payment
At least 5 PCs
Subscription: it is not a perpetual license, if the agreement
terminates, the use right terminates as well
When the OVS agreement terminates, the included software
products can be purchased with perpetual use right; or the
products can be transferred to a new Open Value agreement
with SA
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Enterprise Agreement


Perpetual license by divided payment:
after 3 years the usage right transfers to
the customer as a perpetual license
Educational and evaluation licenses for all
the products
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
MS Enterprise Agreement Subscription

Similar to the EA, the most important
differences are:
• Subscription: it is not a perpetual license, if
the agreement terminates, the use right
terminates as well
• When the EAS agreement terminates, the
included software products can be purchased
with perpetual use right
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Licensing models of ther software vendors

Transactional and contractual licensing
models




Adobe
Corel
Symantec
Etc.
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
Licensing basics
Thank you for your kind attention!
IPR-INSIGHTS CONSULTING AND RESEARCH
1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU