Software licensing

Types of software licenses

Software licenses fall into several main categories, each with specific features and terms of use:

• Commercial license: This common license type requires the user to purchase the software. The user receives the right to use the program under the terms of the license agreement. Most tools used by businesses and institutions fall into this category.
• Open-source license: The user receives access to the source code and can modify and distribute it under defined conditions. Linux systems and the Firefox browser are examples.
• Usage license: The user pays to use the software for a specified period or on a specified number of devices. This license type is common in subscription models such as software as a service (SaaS).
• Trial license: The user can test the software for a specified period, usually with limited functions, before purchasing the full version.
• Freeware license: The software is available free of charge, but users cannot modify or distribute it beyond the terms of the license. Examples include Adobe Acrobat Reader and Skype.
• Adware license: The software is available free of charge and includes advertising. Advertising generates revenue for the developer and supports free access for the user.

How to select the right license

The right license depends on the organization’s activities, number of users, budget, and technology needs. Key considerations include:

• The organization’s specific needs.
• The type of software.
• Costs.
• Technical support.
• Terms of use.

The AMODIT software license — rules and terms of use

The AMODIT software license defines how clients use the system and establishes transparent terms of use. A user receives the right to use the software within a specified scope based on the purchased version and number of users. The license does not grant the right to alter the source code or modify the software. The AMODIT license also includes regular updates and technical support, supporting secure and stable system use under the applicable terms. An SLA (service-level agreement) defines service availability and response levels. AMODIT license pricing is available from the sales team.

Summary

Software licensing is an integral part of every company’s use of digital tools. Understanding and managing license types supports legal and efficient software use while limiting legal risk and optimizing costs.