License agreements and their use in software domain

A license agreement consists of the licensor granting the licensee (based on mutual understanding) via a contractual agreement, the legitimate rights concerning the utilization of intellectual property pertaining to the licensor. Nevertheless, the licensor has explicit rights to the property, as per the license agreement, which also includes benefits that are generated from it. Moreover, if a violation of the agreement occurs, the licensor has the sole right to claim the property from the licensee.

A successfully written license agreement consists of the following:

• Conditions and terms pertaining to the license.

• Agreement period of the license.

• Constraints of the license agreement.

• Operational guidelines such as acceptance, testing and training procedures.

• Transfer rights.

• Sub-license issuing rights.

• Alternation and concatenation privileges with respect to other products

• Licensor liability limitations

• Contract termination process

• Warranty process

• Maintenance and support services.

• Non disclosure of confidential information

• License agreement indemnity pertaining to infringement

• Apply remedies pertaining to the void of the license agreement

A software license agreements is considered as a legitimate agreement amid the software vendor and the end-user. Also known as the End User License Agreement (EULA), this type of contract could be either in written or electronic form (via the embedded software installation). By advertising the copyright notice pertaining to the software product (via its public placement), it assists the protection of the copyright of the product software. In addition, it is vital to taken into account that the software licensing agreement incorporate statements which relives the vendor's liability pertaining to the outcomes of using the software product.

Here are different types of software license agreements:

1. Free Software License – As the name suggests, the software is provided free of charge though it consist of an end-user license (EULA). Moreover, such software rarely provides technical and help support. The users who download such software are granted to explicitly run, execute, modify, study, copy and or re-distribute the program.

2. Shareware Software License – In contrast to Free software license, shareware software license applies to software programs which boast limited functionality for a particular period, for user evaluation. In addition it consists of an EULA which obligates the user to UN-install or purchase the software for its persistent use. Some of the shareware programs consist of having restrictions pertaining the occurrence of use, while others constitute evaluation copies which provides limited functionality until they are “unlocked”

3. Shrink-Wrap Licenses – Documentation (including the license) along with the software program is fastened via a cellophane shrink-wrap package, which is evident for anyone to see.

4. Click-Wrap Licenses – Though similar to Shrink-Wrap licenses, Click Wrap licenses are provided on-line prior to downloading. Hence it is vital that one examines the terms of a click-wrap license agreement in advance, before downloading.

References:

Ec-Council. n.d.. Cyberlaw:Module XVI - Licensing Agreement. n.d.

Written by: G.S.D.Wanigaratne - Network & Communication Administrator  - NSB