Lecture 17 – Software Licensing

Vocabulary flashcards covering key terms, models, organizations, and mechanisms related to software licensing, proprietary vs. open source models, activation, and audits presented in Lecture 17.

Software Licensing

The legal mechanism that grants permission to use software; all software is protected by copyright and must be licensed rather than purchased outright.

Proprietary Software

Software distributed under a license that keeps ownership with the publisher and grants only limited user rights.

Free / Open Source Software

Software whose license transfers ownership of the copy to the user and allows modification, redistribution, and other owner-like rights.

Total Cost of Ownership (TCO) of Software

The overall expense of a system, with licensing usually representing the highest component.

OEM License

A license bundled with hardware (e.g., a new computer) that permits use of pre-installed software on that device.

License Agreement

Contract that stipulates how a specific copy of software may be used and typically limits liability, prohibits redistribution, and bans reverse engineering.

EULA (End-User License Agreement)

The contractual agreement end-users must accept before installing proprietary software; enforceability varies.

Time-Based Licensing

A proprietary license model tied to time rather than deployment; includes perpetual, annual, or per-use (rental) options.

Deployment-Based Licensing

A licensing model based on how software is installed or accessed (stand-alone or client/server), independent of time.

Perpetual License

A time-based license granting indefinite use of a software version, often without free upgrades.

Annual License

Subscription license renewed yearly, typically including updates and possibly upgrades.

Software Rental (Per-Use License)

A pay-per-use model, cost-effective for infrequently used or demo software.

Software Maintenance

An add-on program charging annual fees for upgrades, security fixes, and enhanced support tiers; requires a valid base license.

Stand-Alone Licensing

Licensing for software that runs on individual machines rather than in a client/server environment.

Individual License

Stand-alone approach where each machine possesses its own unique license, often tied to that hardware.

Floating License

Stand-alone approach allowing any installation to run as long as concurrent users do not exceed the licensed count.

Client/Server Licensing

Licensing for software with both client and server components, enforced either on the server or client side.

Per-Connection License

Server-enforced license limiting the number of simultaneous connections to one specific server.

Client Access License (CAL)

Client-enforced license permitting a client to access server resources, purchased per client regardless of servers.

Volume Licensing

Program where one key validates multiple installations, often for government or education; cost based on license pool size.

Activation

Process that validates a software installation against its license to deter piracy; required in many volume programs.

Windows Genuine Advantage (WGA)

Microsoft technology that verifies Windows authenticity and combats counterfeit installations.

Key Management Service (KMS)

Microsoft server role that centrally manages Volume License Keys (VLKs) and activates clients once an activation threshold is met.

Volume License Key (VLK)

A single key issued for volume licensing, validated by Microsoft and used by a KMS host.

Activation Threshold

Minimum number of clients (typically 25 PCs or 5 servers) required before KMS activation occurs.

Open Source License

License that grants extensive user rights (modify, redistribute, reverse-engineer) while retaining copyright with the publisher.

GNU General Public License (GPL)

The most common open source license; requires derivative works to remain open and provide source code.

BSD License

Permissive open source license originating with BSD OS; allows redistribution with minimal restrictions.

MIT License

Permissive license governing software like X-Windows and PuTTY; allows reuse with simple copyright notice.

Software License Audit

Periodic review to verify compliance; non-compliance can incur monetary, legal, or criminal liabilities.

Software & Information Industry Association (SIIA)

Trade group with an Anti-Piracy Division known for campaigns such as 1992’s “Don’t Copy That Floppy.”

Business Software Alliance (BSA)

Industry group (e.g., Microsoft, Dell, Adobe) that pursues software piracy, sometimes encouraging whistleblowers with rewards.