Compliance is legal usage of software products, i.e. effective software usage complies with legal requirements regarding software usage.
Documentation accompanying the software (for example CD, booklet) contains information (installation guide, user manual, installation or registration keys) regarding to software usage. Documentation accompanying the software falls under copyright protection (similarly to the computer programme).
Downgrade right is granted in the software license agreement, and authorizes the user to use the prior versions of the specific software beside or instead of the current version (according to the terms and conditions established in the agreement).
End User License Agreement (EULA):
End User License Agreement (EULA) is an agreement concluded between the software vendor and the end user. This agreement declares the rights and restrictions related to the software usage relationship.
Free software (open source software):
The license of free software (open source software) grants, that the software code can be studied, run, copied, redistributed and modified without restrictions.
Freeware is proprietary software, which is authorized to use without remuneration.
Full Package Product (FPP):
The license of a Full Package Product (FPP) is concluded by opening the software package (the agreement comes into existence by implied conduct, i.e. the user accepts the terms and conditions of the agreement by breaking the wrap).
Infringement of copyright, “piracy”:
The person, who infringes a right of an author/ copyright owner of a work, commits “infringement of copyright” crime. Therefore the person who uses software without license or contrary to the license commits “infringement of copyright” as well.
License is an agreement, in which the author or the copyright owner authorizes the user to use his intellectual property and as a general rule the user is obliged to pay remuneration.
Maintenance, Upgrade Protection, Upgrade Advantage etc.:
Maintenance (Upgrade Protection, Upgrade Advantage) is granted in an agreement, i.e. the copyright owner grants the user (who has been already using its software) to use the new versions of the computer programme issued under effect of the agreement, and the user is obliged to pay (generally annual) remuneration. (Occasionally the “maintenance, upgrade protection, upgrade advantage” is not separated explicitly from “support” in the agreement.)
Media is the data storage (for example CD) accompanying the software product, which contains the files needed to install and use the software.
Original Equipment Manufacturer (OEM):
OEM software is software which is provided with hardware product. Its license sets out that the software is not allowed to use without the original hardware product.
Perpetual license is a license agreement which grants the user to use the software for indefinite period according to the terms and conditions established in the agreement.
Proprietary software (closed source software):
The license of proprietary software (closed source software) discloses to study and modify the software, the copyright owner sets out rights and restrictions strictly. (Commercial software, shareware, freeware are types of proprietary software.)
Registered/named license is a license agreement which contains the name of the user or other identifier which determines the person of the user clearly (for example the licences of FPP software are different typically).
Shareware is proprietary software. It is granted to use without remuneration during the period specified in the license agreement (evaluation period), but if the condition specified in the agreement comes or the period expires, the software will become a typical commercial software, i.e the user will be obliged to pay remuneration.
Software Asset Management:
Software asset management means those procedures which are necessary to manage transparently, legally and economically the lifecycle of the software which is an essential asset to the company operation. Software assets are such valuable assets among the company assets which require expressed attention and professional management procedures. “Software asset management is effective management, control and protection of software assets within an organization.” In: ISO 19770-1:2006 Software Asset Management standard.
Software compliance audit:
Software compliance audit is the examination of the software usage of a company. It can be initiated or executed by any software vendor, authorized administrative body (police, tax authority) or SAM expert (for example IPR-Insights), which is authorized by the company .
Subscription license is a license agreement which grants the user to use the software for definite period. If the definite period expires, the license terminates. Typically the latest version of the specific software is authorized to use during the “subscription” period.
Support agreement is a specific agreement which grants services to the proper use of software (for example telephone, e-mail and personal consultation, fixes, patches, training).
Upgrade is granted in a specific license agreement. The copyright owner authorizes the user to use the new software version of the specific software beside or instead of the current version. The user is obliged to pay remuneration (it is lesser than the original license fee). The upgrade license is an alteration of the original license agreement, so the original license and the upgrade license shall be construed together. Version upgrade, product upgrade, language upgrade and competitive upgrade are typical types of upgrade licenses.
Volume License Agreement:
Volume license agreement is an agreement, in which the sum of the remunaration paid against the software usage and the extension of use rights granted by the copyright owner depend on order levels (i. e. the quantity of ordered software).