Software License Types
- Individual (Single-user): This license type allows the program to be installed and used on one CPU which is not accessed by other users over a network. The software will only be used on a single computer, and other users will not be able to access or run the software while connected to your computer. Types of individual licenses are:
Perpetual license: allows the customer to install and use the software indefinitely. Technical support is included for a limited term, usually 90 days.
Subscription license: Allows the user to use the software for a specified time period. This license usually includes technical support and access to upgrades and patches released during the term of the subscription. 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.
Freeware license: This license type is offered as freeware by the author and does not require paying any fee for use.
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.
- OEM (original equipment manufacturer): These licenses cover software for stand-alone PC's and notebooks and MUST stay bundled with the computer system and NOT distributed as a separate (or stand-alone) product. This software will be identified or labeled "For Distribution Only With New Computer Hardware."
- Educational or Academic Software: Software marked for distribution to educational institutions and students at reduced prices. This software is usually labeled that it is an academic product and for use only by academic or educational institutions.
- Not for Resale (NFR) Software License: Specific and restricted licenses that are made available by software vendors directly to the distribution channel and are typically marked NFR with explicit conditions that it is NOT FOR RESALE. The NFR software is not licensed for normal commercial distribution.
- Concurrent Use: This license type requires that you purchase licenses for the maximum number of people who will be running the software simultaneously. However, you can usually install the software on more computers than
- 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.
- Site/Enterprise: This license provides access to software at a single location. Typically, these licenses are individually negotiated with the publisher and vary widely in their provisions.
- Unlimited: See Site/Enterprise license above.
- 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.
- 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. This license is typically used in conjunction with a network license.
- 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.
- Per Mailbox (Education customers only): If you are an education customer using Exchange Server, you have the additional option of deploying licenses in Per Mailbox mode. With this model, you acquire one CAL for each unique mailbox accessing Exchange Server.
Add-on’s to existing or new licenses
- Upgrade: 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.
- Student use: This allows students to use the software as long as they are students of the institutions. Students are required to uninstall software upon leaving the University.
- Secondary use: Allows the licensed end user to use the software on a second computer.
- 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.
- Home use: Similar to Work-at-home rights
- 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. Subscription/Maintenance added to an existing license may change the original license (e.g. Microsoft select software assurance added to an OEM license changes the OEM license to a Microsoft select license; with all benefits)