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Software Licensing – Why Is It Important?

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1 June 2021

Almost every business utilises various software for their operations and processes including communication with employees and vendors. In many cases, most software requires agreeing to the terms and conditions or licenses in order to be accessed on any device. 
However, if this software is unlicensed, it can harm the company’s efficiency and productivity. This means that understanding the importance of software licensing is essential in protecting your business operations from unethical and serious cyber threats.

What is Software Licensing?

There’s a misconception about most software being sold. In most cases, vendor-purchased software is licensed and requires you to agree to the terms and conditions mentioned in their documentation. 
Designed to protect the intellectual property of the software developer, a license is a text document that is a compilation of responsibilities and the different clauses of legal terms and limitations. This also includes a binding outline for the use and distribution of the software with rights such as installation, warranty and liabilities listed out properly.
New users or software purchasers will usually enter into an end-user license agreement (EULA) that provides a legal definition to the relationship between the software provider and licensee. This contract establishes the rights for purchase, installation and use of the software.
Moreover, every license agreement typically consists of a clause that starts when the conditions are activated by the user. Whether it is from opening the packaging or clicking on the run option, the specific instance may vary from vendor to vendor.
Cloud-based applications like SaaS often include details like the charges per user, duration of the agreement, terms of cancellation, etc. 
That said, here are the five main types of software licensing that cover different kinds of software –

  • Public Domain License – Any individual is free to use and modify the software
  • Lesser General Public License – A person can link to open source libraries within their software. 
  • Permissive – Lesser restrictions and requirements in terms of distributions and modifications of the software
  • Copyleft – More restrictive; also known as reciprocal license
  • Proprietary – Most restrictive out of all; not permitted for copying, modifying or distribution

Out of all these types, permissive is the most common amongst open-source software licenses. 
Since developers use software for various reasons, ensuring that you adopt the correct legal method of acquiring the required software allows you to keep your business protected.
Additionally, based on the type and way the software is provided, the cost may vary from vendor to vendor.

Importance of Software Licensing

Software licensing is important as it ensures that the software is being used legally and every business is paying only for the tools that they are using. Finding the right software licenser for your business, like Redpalm, can ensure easy software management and better efficiency.
With this in mind, here’s why software licensing is important –

1. Using Unlicensed Software Is Illegal

Unlicensed software makes your company vulnerable and exposes you to potential threats and risks. It is also considered software piracy.
In such cases, the software owner or copyright owner can take legal actions against you making you liable. With this, the government can also obligate you to pay for the damages on your part. Depending on how severe the violation is, you’ll be personally held accountable.
Since most companies also have tools in place to seek out unlicensed software, it’s best that you do things correctly and purchase software from an established company with a EULA agreement.

2. Better Protection Against Cyber Security Threats And Risks

The presence of unlicensed software is a major reason behind malware and other types of cyber threats and attacks. This also means that devices that use such software will face more attacks when compared to those with properly licensed software.
Many studies show that unlicensed software leaves you exposed to risks that can ultimately lead to losses for your business. If you want to improve security for your business, doing it the legal way by entering into a EULA will ensure better protection.

3. Helps You Save Money And Time

From saving money and time to better efficiency, a business needs to have licensed software for smooth functioning. Cyber threats can prove to be very expensive in terms of the damages and losses you face. Moreover, the time taken to tackle the problems will also set your business back.
Since saving time and money is a priority for all businesses, making sure you’re covered wherever possible is always a good idea. Through software licensing, not only do you save on both but you also ensure better protection and efficiency in the daily operations of your organization.

To Conclude

While many businesses try to find ways to use free tools and software to save on costs, when you take a step back and consider, they’re not worth the worries and future costs. Software licensing is the right and legal way of using software for your business, any other roundabout method will only cause problems for you.
By working with a technology procurement service provider, you can get licenses for tried and tested software that will help you improve your business.

Contact Redpalm For Software Licensing 

Now that you’ve understood the importance of software licensing, finding the right solutions provider is essential. At Redpalm, with our robust solutions and services, we are your ideal IT service and solution provider.
With our straightforward software solutions, you can grow your business without having to worry about security and protection.
To find out more, give us a call today!

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