As a consumer or business owner, you may use software every day, whether it be utilizing a cloud-sharing application, downloading desktop programs, mobile apps, and subscription tools, or otherwise. What you may not realize, though, is that you are actually participating in what is known as software licensing. This is to say that there are explicit legal parameters you must abide by, per the United States Copyright Act. Without need for further introduction, please read on to discover what it means to license software and how a seasoned New Jersey licensing agreement lawyer at The Ingber Law Firm can help you do so legally and effectively.
What does it mean to license software instead of owning it?
First of all, just because you “buy” a software does not necessarily mean that you “own” it. Rather, legally speaking, you buy a license and not the software itself. Therefore, a software license is permission to use the software under certain conditions set by the developer. This is because, ultimately, the software is the developer’s protected intellectual property.
For a consumer, a software license typically provides limited, non-transferable rights, like the ability to install and use the software for its intended purpose on one device or one account. That is, you may be prohibited from copying, reverse-engineering, or transferring access to the software. Further, uninstalling software does not entitle you to a refund or perpetual access.
A business may be given more expansive rights, such as the authority to conduct multiple installations or modifications to the code. However, the punishments inflicted for violating this licensing agreement may be far more severe than what a consumer would be faced with, like compliance audits, financial penalties, and infringement lawsuits.
What kinds of software licenses are available to users and businesses?
Developers use different types of licenses depending on how they want their software used, shared, and protected. Whether you are a user or a business, you must understand what license is attached to the software you use before clicking “I agree” to protect yourself from financial and legal consequences. Without further ado, below are some of the most common kinds:
- Proprietary or closed-source license: a developer may keep ownership of the code and tightly control its usage, usually only giving users the right to install the software on their device.
- Open-source license: a developer may allow users to use, modify, and redistribute the software, but such changes may be required to be shared publicly or on the same open license.
- Subscription and software-as-a-service license: a developer may have users pay ongoing fees for access to the software, rather than buying it outright.
- Click-wrap or shrink-wrap license: a developer may take a user’s agreement to their terms by simply installing the software or opening the package, which usually surprises users with data collection terms and the like.
For further legal assistance, please hire a competent Essex County, New Jersey intellectual property lawyer from The Ingber Law Firm. Schedule your initial consultation with us today, and see just how much we can do for you.