IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Dr Eszter Telek IPR-Insights Consulting Software license agreements

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Software and related materials executable code - on media / download from the Internet software documentation (user guide, operational guide etc.) – paper / electronic license (terms & conditions) – paper / electronic invoice or other documentation about the procurement (containing all relevant information in line with the license) SOFTWARE IS LICENSED NOT SOLD

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) License (licensing agreement) License is a specific agreement, in which the author authorizes the use of his work and basically the user is obliged to pay a remuneration (license fee) therefore. proprietary software (closed source) free software (open source) semi-free software BUT irrespective of remuneration software usage have to be licensed by the author (vendor) every time

Licensing basics Closed source software commercial software freeware shareware other remuneration IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics Open source software Free software GNU GPL Etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Forms of software licenses Named license with unique ID generally agreements which are concluded by the consensus of parties or other license confirmations (ie. belongs to a frame contract etc.), which contains the name of the user in this case you do not need the invoice for certifying legal usage (but you need it for accounting purpose!) Not named licenses retail boxes the agreement comes into existence by a real action (opening the box etc.) in this case you have to own the invoice as well

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Terms of licenses Undefined term perpetual license perpetual license by divided payment Defined term subscription time limited test, evaluation license etc.

Licensing basics Obligatory provisions direct subject: detailed rights to use the software indirect subject: exact definition of the work so it is a basic requirement that the license agreement exactly defines the software and the right which is granted by the author to use it IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Extent of the license Identified number of software pieces and measurment type per device per server per processor per user per concurrent user per transaction (all other type of measures besides the above) combination of the above types (ie. per server+per device = MS server + CAL model) etc.

Licensing basics Rights of lawful acquirer Rights of lawful acquirer – granted by the Directive specific contractual provision can exclude the following rights copying, adaptation necessary for lawful use, including error corrections cannot be excluded by contract right to create back-up copies right of reverse engineering right of decompilation IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Possible user rights... using secondary computer downgrade right (right to use the previous versions) Alternatively Concurrently Steps backward new version right (right to use the latest versions) technical support training etc.

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) and restrictions territorial limitations limitation of the usable language edition limitation determination of the hardware determination of the user limitations regarding to license transfer (affiliates, legal succession, outsourcing) etc.

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Miscellaneous warranty and liability termination of contract governing law arbitration etc.

Licensing basics Supplemental agreements Upgrade license Update is diferrent (fix, patch, service pack) Maintenance agreement Support agreement IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Upgrade types language product (for example to change the edition) version competitive User has to own the base license to the upgrade license in order to certify legal usage. (I.e upgrade license is an amendment of the original license agreement.)

Licensing basics Typical software licences OEM license FPP license Volume license IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics Big vendors – typical licensing models Customer types Levels Quantity Price Discount Rights and restrictions Good and well-known example: Microsoft licensing models IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics Licensing models of Microsoft Perpetual licenses FPP (box) OEM Open Business Select Open Value Open Value Company Wide Enterprise Agreement Subscriptions Open Value Subscription Enterprise Agreement Subscription IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS FPP In the box: install kit, manual, license (in some cases only electronic), registration form are included Usually you can use only one version of the software product Licensing terms are set out in the EULA There is no end user identifier on the license, so you have to own an invoice (as conclusive document) It’s the most expensive way of the software procurement

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS OEM software Software can be purchased with hardware: Operating systems Office (usually a special edition) Windows Server, SBS Usage of one version is permitted only (but there is one exception) The license is electronic, COA label grants the originality There is no end user identifier on the license, so you have to own an invoice Product support provided by the hardware supplier

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS volume licensing models Named licenses Usage terms are set out in Product Use Rights (PUR) document Downgrade right Software Assurance

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS upgrade - Software Assurance (SA) It is used instead of earlier VUP, CUP, LUP, PUP and UA models You are authorized to use the latest versions until the agreement terminates You can order license (L) or license and software assurance (L&SA) in Open / Select SA is included in OV/OV CW/OVS/EA/EAS Select customers can get SA by one-time payment or by divided payment Renewal is available in the case of continuity Extra services can be provided in SA Program

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Open Business & Volume Two-year agreement Easy program to purchase software licenses From 5 licenses it can be required (Business) No install kit, no manual (procurable separately) Software Assurance can be ordered

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Select Licensing model for enterprises, only LAR partners sell Min. 3-year contract Customers’ forecast determine the discount level Updated media are provided automatically until the agreement terminates Educational and evaluation licenses for all product Software Assurance is available

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS platform agreements - advantages Simplified license management The standard computers in the case of Windows, Office, and server CALs simplifies the license inventory to the number of PCs Any version of the licensed software can be used One agreement for all license Upgrade periods can be handled easily Contain the new version of the licensed software Installations on demand

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Open Value Available from 5 licenses No minimum reorder Monthly order (notification), annual payment Price protection is provided from the order to the termination of the agreement. Types Companywide option Non-companywide option

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Open Value Subscription Similar to the Open Value, but the most important differences are: Annual order (notification) and payment At least 5 PCs Subscription: it is not a perpetual license, if the agreement terminates, the use right terminates as well When the OVS agreement terminates, the included software products can be purchased with perpetual use right; or the products can be transferred to a new Open Value agreement with SA

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Enterprise Agreement Perpetual license by divided payment: after 3 years the usage right transfers to the customer as a perpetual license Educational and evaluation licenses for all the products

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) MS Enterprise Agreement Subscription Similar to the EA, the most important differences are: Subscription: it is not a perpetual license, if the agreement terminates, the use right terminates as well When the EAS agreement terminates, the included software products can be purchased with perpetual use right

Licensing basics Licensing models of ther software vendors Transactional and contractual licensing models Adobe Corel Symantec Etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1)

Licensing basics IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10. TEL.: (+36-1) FAX: (+36-1) Thank you for your kind attention!