All you need to know about Software Licensing

 With the influx of new devices, cloud services, and apps, software licensing continues to be complex. The recent software violation lawsuit against Forever 21 is a gentle reminder for every company that you can’t afford to lose the track of what software you are using.

Software licensing violations may not only result in lost revenues, but may also cause irreparable losses to the business in the long run. However, make sure that you understand software licensing well enough to be able to avoid long term damages.

What is a Software License?

A software license is a legal agreement between the owner/creator and the user of a program. Under the agreement, the creator gives the user specific rights to use the program under certain conditions. If, for any reason, the user fails to abide by the agreed upon conditions, the creator has the right to file a lawsuit under the infringement of copyright law of the country.

Why are Software Agreements Violated?

Although many software license agreements are violated purposely by companies that are trying to evade license fee payment, some violations may occur due to lack of understanding of the agreement.

This usually happens because most software vendors have no remote means of identifying the violation of software license agreement. In such cases, violations are discovered by accident or by logical deduction. For example, a support software vendor may fortuitously discover that the client has received far greater number of calls than what they were entitled to.

The best way to avoid software licensing issues is deploying an efficient software license manager. Using the tool, both vendor and end-users can make sure that the program is being used under the specified conditions.

How to Respond to Software License Agreement Violations

When the violation is unintentional, it is usually a matter of buying more software licenses for businesses. However, it is better for vendors to negotiate a corrective action to avoid costly lawsuits.  With corrective negotiation, they may offer license agreements suiting different business models to ensure a cordial and supportive relationship with the clients. If, however, the violation is clearly intentional or the client is unwilling to correct the violation, legal action may be unavoidable.

How to Avoid Software Licensing Violations

In order to avoid software licensing violations, it is better for software vendors to use a software license manager that could control and manage the client’s compliance with the licensing agreement without having to perform investigations or audits from time to time.

When you are looking to protect your software , contact Reprise Software! With over 25 years of experience in the field of license management, the company offers the best software asset management services for businesses of all sizes and types.