A: Probably the most important (and perhaps most misunderstood) difference between computer software and other assets that your company may have purchased is that you don't own the software. What you have purchased is a license to use the software. 

When you purchase software, whether it is in a box in the store, with a computer that you purchased, or downloaded of the Internet, what you really are paying for is a software license which gives you, the user, the legal right to use that particular software application. It is very important that you file both the software license and the proof of purchase a secure place.

Furthermore, since software licenses can vary widely, not only across software vendors, but often even across the same software application, you also need to read, understand the terms of each and every software license purchased.  

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A: The key to being able to prove that your software is legally licensed is to have good documentation that what you have installed matches what you have purchased. Current best practices recommend that you complete the following steps at least every three to six months:  

• INVENTORY what is installed
• DETECT what is installed
• NAME the application without using a database or registry method
• UPLOAD the results to a central repository
• FILTER the results to focus on major application packages
• AGGREGATE the results to work out "how many copies of"
• IDENTIFY LICENSES and check the installations don't violate license conditions
• LOCATE ORIGINAL media and secure it
• CHECK media for counterfeit or bad copies
• ESTABLISH PROOF of Purchase by marrying invoices to asset ownership
• CULL and REMOVE illegal copies

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A: In some circumstances, yes, as long as you follow the terms of transfer outlined in your license agreement. You may not rent or lease the software, but you may transfer your rights under the End User License Agreement (EULA) on a permanent basis provided you transfer all copies of the software and all written materials, including the original license agreement, where applicable. For any valid transfer, the software recipient must agree to the terms of the EULA. Any transfer must include the most recent product upgrade as well as any prior versions that you have.

Most vendors will require you to remove all copies of the product from your computer, including your portable computer, in instances where a “second copy” is allowed prior to transferring your software. 

Note, many products distributed by Original Equipment Manufactures (OEMs) may not be transferred under any circumstances. Check the terms of the EULA accompanying the OEM products to determine transferability.

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A: An EULA is the standard license that comes with most software purchases. It usually appears in one of three forms: an electronic agreement that is found on the software itself, a piece of paper included in the software's packaging, or a piece of paper added to the user's manual. The agreement protects the author (your software's publisher) against unauthorized copying of the software and/or other violations of its property rights. Unless it is specified otherwise, most software products are for a single user only.

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A: When computer manufacturers such as Gateway or IBM sells a computer system, they usually include an operating system (i.e. Windows) and some application software (like an office suite) as part of the system package at a discounted price. The software is the same as what you might buy in a retail copy, but the software license is tied to the hardware you purchased with it. These types of licenses are known as Original Equipment Manufacturer (OEM) licenses.

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A: In most cases, no. However, the software license agreement which you purchased will outline very clearly whether you can or not. 

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A: Most software vendors allow licensed users either to upgrade versions for free or at a discounted rate. Some vendors offer upgrade assurance programs through their volume license programs allowing for free upgrades within broader time frames. However, you should check the terms and conditions for each individual manufacturer, as upgrade policies can vary.

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A: Volume licensing represents bulk license purchases that are intended for the needs of medium-size and large companies. These licenses are available for many products and typically range from five-user licenses to ones for more than 1,000. The agreements most often come in paper form (i.e., a certificate that indicates specific user permissions). This means that when you purchase your product license, you are expected to have the original software already. The new license grants you permission to use that software on additional computers. You may also purchase new software media to match the number of licenses you own.

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A: Transactional licensing is geared towards organizations of all sizes, and does not require a legal contract. To use a program like this, customers simply must initiate and complete a purchase. Contractual licensing often is targeted towards larger organizations, often involves a legal contract between the manufacturer and the user, and spans a period of one to three years. Contractual licensing programs also can involve forecasting.

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A: Most software vendors have set up their own systems for selling and merchandising licenses. infusionIT recommends that you check with each vendor for specific information about its individual licensing policies. Our online license purchasing system maintains all of the various purchasing rules of the vendors, so you can shop for licenses easily through our system.

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A: Most software vendors allow licensed users either to upgrade versions for free or at a discounted rate. Some vendors offer upgrade assurance programs through their volume license programs allowing for free upgrades within broader time frames. Please check the terms and conditions for each individual manufacturer, as upgrade policies can vary.

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A: Most vendors will provide a certain amount of technical support per product.  As these policies vary according to each manufacturer, we recommend that you check the terms and conditions of each individual vendor for details.

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A: Here are just a few of the many licensing information resources available on the web:

You can also contact us at infusionIT.   

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