Computer Software Licenses – Types of Software Licenses and Types of Program Licenses

Before you start using any computer program, you need to familiarize yourself with the terms of use set forth in the license. The license specifies what you can and cannot do with the software. The licensing system for computer programs can be complicated, but once you understand the basic principles, it will be easier for you to navigate.

Basic types of software licenses

Why can some programs be freely copied, while others cannot? The answer lies in the differences between types of software licenses. Let’s start with the basics—the legal agreement between the software developer and the user specifies in detail the terms for using the software, distributing it, and making any modifications. Different types of licenses offer different possibilities—ranging from very restrictive limitations to almost complete freedom of action.

If you violate the agreed terms, you risk serious legal consequences. Therefore, you should carefully review the documentation before installing any software.

Commercial software licenses

Commercial software licenses fall into several main categories:

• OEM (Original Equipment Manufacturer) – permanently assigned to specific equipment;
• BOX – allows you to transfer data between devices;
• Time-limited license (subscription) – based on a monthly or annual subscription;
• Educational license – for schools and students;
• Volume license – for installation on multiple workstations.

Wondering which license to choose? It all depends on how you plan to use the software. If you need software for your business, volume licensing packages will be the most cost-effective—you’ll pay less per workstation. Individual users must choose between the OEM version (cheaper, but tied to a single computer) and the BOX version (more expensive, but more flexible).

Many people also opt for a subscription model— in this case, you pay a small monthly or annual fee instead of spending a large sum up front. In return, you always have access to the latest version of the software and technical support. And if you’re a student or teacher, check out the educational offers—you can often use professional tools for a fraction of the standard price.

Free and partially free solutions

Among the types of software licenses available, you’ll also find many free options. Freeware allows you to use the program for free, but usually without the right to modify the source code. Shareware, on the other hand, lets you test the application for a limited time or with certain functional limitations.

One interesting option is donationware, where the program is available for free, but you can voluntarily support the developer with a donation. Adware, on the other hand, offers free access in exchange for displaying ads.

There are also a few unusual software licenses, such as Postcardware, where the “payment” consists of sending a postcard to the program’s creator, or Careware, which encourages users to support charitable organizations.

A popular trial version is a time-limited, full version of the software that allows you to test all its features before purchasing it.

Open-source licenses

Many of the programs you use every day are licensed under open source. Some well-known examples include Firefox, Linux, and LibreOffice. An open approach to code fosters software development because it allows many programmers from around the world to work on it.

The GPL (GNU General Public License) is one of the best-known open-source licenses. It is a so-called restrictive license, which requires that any project using GPL-licensed code be made available under the same terms. In contrast, the MIT and Apache licenses are permissive—they impose far fewer restrictions and allow the code to be used even in closed-source, commercial projects.

It is also important to distinguish between GPL v2 and GPL v3—the newer version provides additional protection against software patents and DRM measures.

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FAQ – Frequently Asked Questions

• Can I use the same program on multiple computers?

It depends on the type of license. OEM licenses are tied to a single device, while BOX licenses often allow installation on multiple computers.

• How can I check what kind of license a program has?

You can usually find information about the terms of use during installation, in the program documentation, or on the manufacturer’s website.

• Can freeware be used for commercial purposes?

Not always—a separate license agreement is often required for commercial use.

• What are the consequences of violating the license terms?

The consequences can be serious—ranging from financial penalties to criminal liability.

1. Can I sell a program that I no longer need?

It also depends on the contract—some allow resale, while others strictly prohibit it.