SOFTWARE LICENSING:-
· What is a software license?
A software license is a contract between the entity that created and supplied an application, underlying source code, or related product and its end user. The license is a text document designed to protect the intellectual property of the software developer and to limit any claims against them that may arise from its use.
A software license also provides legally binding definitions for the distribution and use of the software. End-user rights, such as installation, warranties, and liabilities, are also often spelled out in the software license, including protection of the developer’s intellectual property.
Most software falls under one of two categories that have distinct differences in how they are viewed under copyright law:
- Proprietary — also referred to as “closed source”
- Free and open-source software (FOSS) — referred to as “open source”
Proprietary software licenses –
Provide no such authority for code modification or reuse and normally provide software with operational code only, and no source code. A proprietary software license often includes terms that prohibit “reverse engineering” of the object code with the intention of obtaining source code by the licensee.
Give rights to the customer that include modification and reuse of the software code, providing the actual source code with the software product(s). This open-source type of licensing affords the user authority to modify the software functions and freedom to inspect the software code.
In both cases, the software license will most often specify limitations of liability from use of the software product, any mutual responsibilities such as support, and any warranties or disclaimer of warranty.
Where software is not covered by any license, it is normally categorized as:
- Public domain software — freely available for use and not copyright protected
- Private unlicensed software — such as business applications that still falls under copyright protection
Open source and proprietary software licensing may also specify additional restrictions and terms:
i) Transfer of ownership to the buyer or retention of ownership by the seller
ii) Any authorization for copying, selling, or distributing the software
iii) Definition of whether the license constitutes purchase or leasing of the software
· How Does Software Licensing Work?
New users of a software will normally enter into an end-user license agreement (EULA) that constitutes a legal definition of the relationship between the licensor (provider) and licensee (user or business). The EULA is a contract that establishes the rights of the purchaser for installing and using the software.
Every EULA contains a clause that stipulates when its conditions are activated by an end user. This may be the moment the user opens the product packaging or, for example, when the user clicks on a button agreeing to accept the EULA’s terms to access it.
Cloud-based applications such as Software as a Service (SaaS) will often include license details in EULAs including:
- Monthly or annual charges per user
- Duration of the agreement
- Terms of cancellation of the agreement
- Recovery of any charges if canceled during the agreement
An additional use of software licensing is in cases where a software developer or firm grants authority for selling or distributing the software under the second party’s brand. The developer retains ownership, but the re-branding company is permitted to resell the software product. This method of licensing is called “white labeling.”
· What Are the Types of Software Licenses?
There are five main software license categories or types used to cover different kinds of software and various business arrangements. These encompass a wide spectrum of licensing scenarios, from free software (public domain) to paid commercial software (proprietary).
Between these two extremes, there are also three categories (GNU/LGPL, permissive, and copyleft) that apply to various forms of open-source projects. Failure to follow the terms and conditions of an open-source license can lead to revealing trade secrets or even legal action from the project’s developers.
5 Types of Software Licenses You Need to Know About;
1. Public Domain License:
When software is defined as being in the public domain, anyone is free to use and modify the software without restrictions. This is a “permissive” license that allows adopting the code into applications or projects and reusing the software as desired.
For many reasons, businesses must exercise caution when adopting public domain software in projects or other important applications:
- Public domain software may not always adhere to best coding practices or may not be up to standards of secure software that the application requires.
- Software that does not fall under specific licensing terms is not always public domain code. Be sure the software is truly public domain before copying, reusing, or distributing it.
2. GNU/LGPL — GNU Lesser General Public License (LGPL):
Under an LGPL license, developers have rights to link to open source libraries within their own software. Resulting code can be licensed under any other type of license — even proprietary — when projects are compiled or linked to include an LGPL-licensed library.
The caveat is that if any part of the library is copied into the code or modified, the terms of the original LGPL license will apply to the developed code that used the library.
3. Permissive:
This type of license is one of the most common and popular among open-source software licenses. Under a permissive license — also referred to as “Apache” or “BSD style” — there are few restrictions or requirements for the distribution or modifications of the software. Another variation of a permissive software license is the “MIT” license.
Variants in permissive licenses include differences in requirements for preserving license notices and copyrights for the software, as well as how the software may be used (commercial or private), trademark requirements, and other stipulations.
4. Copyleft:
This license’s terms are restrictive — known as reciprocal licenses. Under the terms of a copyleft license, the licensed code may be modified or distributed as part of a software project if the new code is distributed under the same software license.
This means that if the code included in the software product was specified to be for “personal use only,” the new product being distributed must carry that same designation/restriction.
Since the original software included with the new project allowed modifications and distribution, this may not be the best license for software developers because the resulting code must also carry the copyleft license type — including the availability of the source code.
5. Proprietary:
These software licenses make the software ineligible for copying, modifying, or distribution. This is the most restrictive type of software license, protecting the developer or owner from unauthorized use of the software.
· What is Copyright Law?
Copyright Law protects original works of authorship fixed in any tangible medium of expression from which they can be perceived, produced, or otherwise communicated, either directly or with the aid of a machine or device. An original work of authorship that can receive copyright protection extends to:
- literary works
- musical works
- dramatic works
- pantomimes and choreographic works
- pictorial, graphic, and sculptural works
- motion pictures and other audiovisual works
- sound recordings, and architectural work.
There has been a long history of copyright law dating back to British colonial times. The first known copyright law was the British Statute of Anne (1710). The first American copyright law after that was the U.S. Copyright Act of 1790, which was the same law as the Statute of Anne but now include maps, charts and books for 14 years. A revised version came about with the U.S. Copyright Act of 1909 which extended the copyright period to 28 years. Finally, we have the current version which is the U.S. Copyright Act of 1976, which extended the copyright to the entire lifetime of the author and then 70 years after his/her death.
With the U.S. Copyright Act of 1976 comes exclusive rights that the author of a work has.
Subject to 17 U.S.C. § 107 through 122 the owner of the copyright has exclusive rights to do or authorize any of the following:
Rights
Example
To produce the copyrighted work in copies or phonorecords.
Backing up a file or saving a file to a CD for archival purposes.
To prepare derivative works based upon the copyrighted work (A derivative work is a work based upon one or more preexisting works)
Taking the work of the Harry Potter books and making them into a motion picture work.
To distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending.
You sell a product that you make.
In the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly.
To perform a musical work with an orchestra for the public.
In the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual
images of a motion picture or other audiovisual work, to display the copyrighted work publicly.
A dance recital is put together for the public.
In the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.
A podcast that a radio station puts out.
Recently though software started becoming copyrightable, which was big because math formulae cannot be copyrighted. The case that decided computer programs/software could be become copyright can be viewed in our Defining Cases section. The recent act that became the flagship for copyrighting software was the Digital Millennium Copyright Act of 1998 (DCMA). The DCMA creates prohibitions against tampering with copy protection and access control. This Act also prohibits the use of any software that can circumvent, or get around, access control or copyright effective measures. This would be when a person is trying to crack the protection on a piece of software to make themselves an illegal copy. Refer to our Penalties section for a better idea on the ramifications of this Act. Also, the World Intellectual Property Organization (WIPO) Treaty states that Computer programs are protected as literary works within the meaning of Article 2 of the Berne Convention. Such protection applies to computer programs, whatever may be the mode or form of their expression.
How does Copyright Law apply to Software Licenses?
According to the legal dictionary, a license allows for permission to be granted by a competent authority to exercise a certain privilege that, without such authorization, would constitute an illegal act, a trespass, or a tort. A license granted by a copyright holder on literary or artistic work gives the license holder a limited right to reproduce, sell, or distribute the work. Intellectual Property licenses usually require that the licensee pay a fee in exchange for use of the property. This can be seen whenever a person purchases and installs a product. For example, when a person installs a piece of software (like a game or other program), there is a licensing agreement that the user must agree to.
· Ownership vs Licensing: -
When you purchase software, you receive a copy of the software and a license to use it. You don’t own the software — ownership rights belong to the software company, and you’re still limited by the terms and conditions of the license.
A software license gives you the right to use a software product. It also governs the use of the software along with the copyright laws, which prevent the unauthorized distribution or reproduction of the software. A license might also specify, among other terms and conditions, whether you may install the software on more than one computer and whether or not you can create backup copies of the software.
Even free software, otherwise known as freeware, might come with a license that dictates its use. This is generally in order to prevent a user from altering the software in an attempt to resell it.
· What Is a Software License Agreement?
A software license agreement is a legal document that stipulates several key conditions between a software company or developer and a user to allow use of the software.
These conditions are designed to protect the developer’s intellectual property rights and to limit claims against them for potential damage resulting from use of their software. In some cases, pricing and terms of payment may also be included, though this is often covered in a separate document. The primary purpose of the agreement, however, is to provide detailed ground rules for use of the software:
- Where the software may be installed and how many instances may be installed.
- How the software can be used.
- Whether the software may be copied, modified, or redistributed.
- Any copyrights that apply to the software.
- Ownership of the software — most often specifying that the provider retains all rights of ownership.
- Duration of the terms of the agreement.
- What constitutes correct usage of the software.
What Are Software Licenses Used for?
Developers release software for several reasons, whether it be to demonstrate a new idea, provide benefit to as many people as possible, or for financial and economic gain. To ensure that all parties involved in the process are able to benefit from the software, the terms and conditions for its use must be clearly defined.
These terms and conditions are expressed as a licensing agreement. Software licenses are critical for software providers and users alike for many reasons:
- Written authority for use of software — protects business users and individuals from liability and copyright infringement claims
- Clarification of the number of eligible users of the software
- Definition of what is included — maintenance, upgrades, support
- Warranty agreements and problem mediation process
- Distribution permission and limitations
- Use rights, such as copying or modifications
- Copyright definition, including software and any documentation
- Dates — for installation, training, support assistance, and license duration
- Termination terms, penalties, financial liabilities
- Any performance guarantees and remedies
Software licenses define the complete agreement between the licensor and licensee. The goal is to clarify the relationship from both a legal and technical viewpoint, so there are no surprises or guesswork regarding responsibilities while the agreement is in effect.
For mobile software, the license terms state how much of the user’s sensitive personal data stored on the device an application vendor is permitted to access. These agreements are designed to protect personal information such as financial statements, location, or health data and prevent its misuse.
How Much Does a Software License Cost?
Software license pricing varies widely, depending on the type of software, how it is provided, and the supplier’s cost to develop the software. SaaS providers typically provide a subscription model where the charge is based on the number of users. This grants businesses a great deal of cost control and flexibility.
Software license pricing will vary greatly among software providers that offer complete on-premises business solutions as opposed to those providing open-source objects for building internal applications and web functions. While these costs may seem unnecessary, much like an insurance policy, it will provide protection when you actually need it.
· Following are some examples for software licenses;
1) BSD Licenses:-
BSD licenses are a family of permissive free software licenses, imposing minimal restrictions on the use and distribution of covered software. This is in contrast to copyleft licenses, which have share-alike requirements. The original BSD license was used for its namesake, the Berkeley Software Distribution (BSD), a Unix-like operating system. The original version has since been revised, and its descendants are referred to as modified BSD licenses.
BSD is both a license and a class of license (generally referred to as BSD-like). The modified BSD license (in wide use today) is very similar to the license originally used for the BSD version of Unix. The BSD license is a simple license that merely requires that all code retain the BSD license notice if redistributed in source code format, or reproduce the notice if redistributed in binary format.
The BSD license (unlike some other licenses e.g. GPL) does not require that source code be distributed at all.
For more details about BSD Licenses, visit
https://en.wikipedia.org/wiki/BSD_licenses
2) Apache License 2.0:-
The 2.0 version of the Apache License, approved by the ASF in 2004, helps us achieve
our goal of providing reliable and long-lived software products through collaborative,
open-source software development.
All packages produced by the ASF are implicitly
licensed under the Apache License,
Version 2.0, unless otherwise explicitly stated.
For more details about Apache License 2.0 , visit
https://www.apache.org/licenses/LICENSE-2.0
3) MIT License:-
The MIT License is a permissive free software license originating at the Massachusetts Institute of Technology (MIT) in the late 1980s. As a permissive license, it puts only very limited restriction on reuse and has, therefore, high license compatibility.
The MIT license is compatible with many copyleft licenses, such as the GNU General Public License (GPL); MIT licensed software can be re-licensed as GPL software, and integrated with other GPL software, but not the other way around. The MIT license also permits reuse within proprietary software, provided that either all copies of the licensed software include a copy of the MIT License terms and the copyright notice, or the software is re-licensed to remove this requirement. MIT-licensed software can also be re-licensed as proprietary software, which distinguishes it from copyleft software licenses. As of 2020, MIT was the most popular software license found in one analysis, continuing from reports in 2015 that MIT was the most popular software license on GitHub, ahead of any GPL variant and other free and open-source software (FOSS) licenses.
Notable projects that use the MIT License include the X Window System, Ruby on Rails, Nim, Node.js, Lua and jQuery. Notable companies using the MIT License include Microsoft (.NET Core), Google (Angular) and Facebook (React).
For more details about MIT License , visit
https://opensource.org/licenses/MIT
4) Mozilla Public License 2.0: -
The Mozilla Public License (MPL) is a free and open-source software license developed and maintained by the Mozilla Foundation. It is a weak copyleft license, characterized as a middle ground between permissive software licenses and the GNU General Public License (GPL), that seeks to balance the concerns of proprietary and open-source developers.
As such, it allows the integration of MPL-licensed code into proprietary codebases, as long as the MPL-licensed components remain accessible under the terms of the MPL.
It has undergone two revisions: a minor update to version 1.1, and a major update to version 2.0 with the goals of greater simplicity and better compatibility with other licenses.
MPL is the license for Mozilla Firefox, Mozilla Thunderbird, and most other Mozilla software, but it has been used by others, such as Adobe to license their Flex product line, and The Document Foundation to license LibreOffice 4.0 (also on LGPL 3+). Version 1.1 was adapted by several projects to form derivative licenses like Sun Microsystems’ own Common Development and Distribution License.
For more details about MIT License , visit
https://opensource.org/licenses/MPL-2.0
5) Eclipse Public License version 2.0: -
The Eclipse Public License (EPL) is a free and open source software license most notably used for the Eclipse IDE and other projects by the Eclipse Foundation. It replaces the Common Public License (CPL) and removes certain terms relating to litigations related to patents.
The Eclipse Public License is designed to be a business-friendly free software license, and features weaker copyleft provisions than licenses such as the GNU General Public License (GPL). The receiver of EPL-licensed programs can use, modify, copy and distribute the work and modified versions, in some cases being obligated to release their own changes.
The EPL is listed as a free software license by the Free Software Foundation (FSF) and approved by the Open Source Initiative (OSI).
Discussion of a new version of the EPL began in May 2013. Version 2.0 was announced on 24 August 2017.
On January 20, 2021, the license steward for the license was changed from Eclipse.org Foundation, Inc. (Delaware, USA) to Eclipse Foundation AISBL (Brussels, Belgium)
For more details about Eclipse Public License 2.0 , visit
