What is a Software License?

A software license is a legal statement that gives permission to a user to use the software. The license also informs the user that the software is copyrighted (if applicable) and that copying the software is illegal without the permission of the copyright holder.

Licenses are commonly pre-installed on the software or can be printed and enclosed separately with the software (in the same box, case, etc).

Unlicensed Software

Unlicensed software is illegal. It is no secret that people use unlicensed software in the workplace believing that the risks of been caught are very small. In some cases, people are unaware that their software is unlicensed.

The most common reason why software is unlicensed is because it is a 'copy' (the legal term is 'piracy'). When software is copied, the license to use the software does not automatically transfer to the copy - hence it is illegal to use copied software with respect to copyright violations.

Where as before, police only had the power to search businesses/individuals suspected of selling or distributing copied software, changes in legislation have given police the power to search any business suspected of using copied software.

The law has also changed on the grounds that the company in general will not solely be responsible for illegal use, but individual staff such as Directors and Managers that knew about the copied software will also face legal action.

The consequences for using unlicensed software will include heavy fines, possible jail sentences (up to 10 years) and computer/networking equipment prohibited in the workplace - permanently.

For small businesses in particular, the prohibited use of computers in the workplace may be reason for business closure. A heavy fine may also completely drain a small business of its capital.

Software Licenses for Each User

Practically all software requires licenses for each user unless stated. If you plan to buy software to be used by a number of people on different machines (PC's), it is cheaper to purchase a number of software licenses - "volume licensing". Contact your software provider for details.

Further Information

The Business Software Alliance (BSA) can answer most of your queries by visiting their website.

http://global.bsa.org/uk/

The leading producer of software is currently Microsoft™. Visit their specialised Licensing web site for more information on software licenses which will answer just about all of your queries on licensing.

www.microsoft.com/uk/licensing/