Your product may be phenomenal, but before you deploy it, you need to deal with the legal issues surrounding the distribution and use of your software.
It's not the sexiest topic, for sure, but it's still extremely important: software licensing . Your product may be phenomenal, but before you deploy it, you need to deal with the legal issues regarding the terms and conditions surrounding the distribution and use of your software.
So, without further ado, here's everything you need to know about software licensing.
What is a software license?
A software license is a legally binding agreement or contract between the creators of the software and the individuals who will use it. Establishes conditions, terms and definitions on how the end user can leverage, install, modify, change, copy and distribute the technology and its source code.
User and vendor rights and responsibilities are defined in the software license. These rights are protected by copyright laws.
How it works?
When a consumer begins using software, they must typically sign an end user license agreement (EULA). The EULA provides legal terms regarding the rights of the individual who plans to use that software. It also involves a variety of definitions and clarifications, focusing on factors such as the length of time the consumer can use it, the price, whether it can be distributed, the support they can expect, and more.
The statement is usually long. You've almost certainly encountered many licensing agreements before and may have quickly scrolled to the bottom before clicking the box saying you agree to the terms, although it's in your best interest to read the agreement in its entirety.
Why Does This Matter?
Software licenses protect both the user and the developer.
From a developer's perspective, they offer benefits such as:
- Prevent users from taking actions such as copying and distributing your software if the license prohibits this
- Limiting Your Own Liability
- Spelling your own rights as a developer
- Allowing you to control the use of your product
From the user's point of view, they offer advantages such as:
- Helping you manage your tools and resources
- Allowing you to stay up to date on how to use your technology
- Preventing you from paying for tools that are not necessary for your business
- Clarify how the provider may use your private information
For both parties, the contract ensures that there are no misunderstandings about how the software can be used.
Types of Software Licenses
Public Domain License
The public domain license allows anyone to use, modify, and distribute the software. Essentially, it indicates that the developer is canceling their copyright. There are few restrictions, if any.
This probably sounds familiar, because the public domain applies to many works and products, not just software. For example, many books published throughout history are now in the public domain and anyone can freely read, adapt or sell these works.
It is important to be aware that not all free software has a public domain license. Users should also be cautious because the code may not feature strong security.
Copyleft License
Copyleft licenses, also called restrictive licenses, are a type of open source license, meaning that derivatives of the software must be open source, just like the original code. Indicates that the program and its modifications may exist under the same terms, and the software may also be changed and made available free of charge in accordance with these conditions.
A famous type of copyleft license is the GNU General Public License (GPL). The GPL makes software free for everyone. Furthermore, users can change the program in any way.
GNU Lesser General Public License
The GNU Lesser General Public License , or LGPL, is a weak copyleft license, in contrast to the GPL, which is a strong copyleft license. Incorporates the terms of the GPL with some addenda and restrictions.
Under the terms of the LGPL, you can link open source libraries within the software code. You can make changes to the software, incorporate it into your proprietary software, and then license it under a separate agreement of your choosing, with your own legal stipulations, as you wish.
Permissive License
Permissive licenses are another type of open source license. Unlike copyleft licenses, however, they have few requirements or stipulations about how users can enjoy, change, reproduce, or distribute the software. Common variants and examples of this type are the Apache License, the BSD License and the MIT License, among others. Each of these types has different terms regarding use and distribution. They often have a warranty disclaimer attached.
Software developers can keep their intellectual property rights. And although there are few restrictions, developers can stipulate some terms and thus exercise control over what happens with their software.
Proprietary Software License
The proprietary license is perhaps the strictest type for users while providing the greatest level of protection for software developers. This is the type of license used for commercial software. Users, for the most part, are not permitted to modify, copy, or distribute software under the terms of this license, making it the most restrictive type available.
Large technology companies such as Apple, Adobe, Microsoft, IBM and Oracle are just a few examples of companies that use proprietary software licenses.
What is the best type of license for your software?
Figuring out licensing when creating new software can be challenging. Determining the right type for you is a complicated process that often requires the opinion of legal experts. As you dive into the world of software development and licensing, consider the different models, thinking about the purpose behind your code and what you want users to be able—or not—to do with it. This will ultimately dictate the best choice for you and your team.
