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Dr Eszter Telek IPR-Insights Consulting

Software license agreements. Dr Eszter Telek IPR-Insights Consulting. Software and related materials. executable code - on media / download from the Internet software documentation (user guide, operational guide etc.) – paper / electronic license (terms & conditions) – paper / electronic

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Dr Eszter Telek IPR-Insights Consulting

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  1. Software license agreements Dr Eszter TelekIPR-Insights Consulting IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  2. Software and related materials • executable code - on media / download from the Internet • software documentation (user guide, operational guide etc.) – paper / electronic • license (terms & conditions) – paper / electronic • invoice or other documentation about the procurement (containing all relevant information in line with the license) SOFTWARE IS LICENSED NOT SOLD IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  3. License (licensing agreement) • License is a specific agreement, in which the author authorizes the use of his work and basically the user is obliged to pay a remuneration (license fee) therefore. • proprietary software (closed source) • free software (open source) • semi-free software • BUT irrespective of remuneration software usage have to be licensed by the author (vendor) every time IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  4. Closed source software • commercial software • freeware • shareware • other • remuneration IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  5. Open source software • Free software • GNU GPL • Etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  6. Forms of software licenses • Named license with unique ID • generally agreements which are concluded by the consensus of parties • or other license confirmations (ie. belongs to a frame contract etc.), which contains the name of the user • in this case you do not need the invoice for certifying legal usage (but you need it for accounting purpose!) • Not named licenses • retail boxes • the agreement comes into existence by a real action (opening the box etc.) • in this case you have to own the invoice as well IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  7. Terms of licenses • Undefined term • perpetual license • perpetual license by divided payment • Defined term • subscription • time limited test, evaluation license etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  8. Obligatory provisions • direct subject: detailed rights to use the software • indirect subject: exact definition of the work • so it is a basic requirement that the license agreement exactly defines the software and the right which is granted by the author to use it IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  9. Extent of the license • Identified number of software • pieces and measurment type • per device • per server • per processor • per user • per concurrent user • per transaction (all other type of measures besides the above) • combination of the above types (ie. per server+per device = MS server + CAL model) • etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  10. Rights of lawful acquirer • Rights of lawful acquirer – granted by the Directive • specific contractual provision can exclude the following rights • copying, adaptation necessary for lawful use, including error corrections • cannot be excluded by contract • right to create back-up copies • right of reverse engineering • right of decompilation IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  11. Possible user rights... • using secondary computer • downgrade right (right to use the previous versions) • Alternatively • Concurrently • Steps backward • new version right (right to use the latest versions) • technical support • training • etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  12. ... and restrictions • territorial limitations • limitation of the usable language • edition limitation • determination of the hardware • determination of the user • limitations regarding to license transfer (affiliates, legal succession, outsourcing) • etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  13. Miscellaneous • warranty and liability • termination of contract • governing law • arbitration • etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  14. Supplemental agreements • Upgrade license • Update is diferrent (fix, patch, service pack) • Maintenance agreement • Support agreement IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  15. Upgrade types • language • product (for example to change the edition) • version • competitive • User has to own the base license to the upgrade license in order to certify legal usage. (I.e upgrade license is an amendment of the original license agreement.) IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  16. Typical software licences • OEM license • FPP license • Volume license IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  17. Big vendors – typical licensing models • Customer types • Levels • Quantity • Price • Discount • Rights and restrictions • Good and well-known example: Microsoft licensing models IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  18. Licensing models of Microsoft • Perpetual licenses • FPP (box) • OEM • Open Business • Select • Open Value • Open Value Company Wide • Enterprise Agreement • Subscriptions • Open Value Subscription • Enterprise Agreement Subscription IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  19. MS FPP • In the box: install kit, manual, license (in some cases only electronic), registration form are included • Usually you can use only one version of the software product • Licensing terms are set out in the EULA • There is no end user identifier on the license, so you have to own an invoice (as conclusive document) • It’s the most expensive way of the software procurement IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  20. MS OEM software • Software can be purchased with hardware: • Operating systems • Office (usually a special edition) • Windows Server, SBS • Usage of one version is permitted only (but there is one exception) • The license is electronic, COA label grants the originality • There is no end user identifier on the license, so you have to own an invoice • Product support provided by the hardware supplier IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  21. MS volume licensing models • Named licenses • Usage terms are set out in Product Use Rights (PUR) document • Downgrade right • Software Assurance IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  22. MS upgrade - Software Assurance (SA) • It is used instead of earlier VUP, CUP, LUP, PUP and UA models • You are authorized to use the latest versions until the agreement terminates • You can order license (L) or license and software assurance (L&SA) in Open / Select • SA is included in OV/OVCW/OVS/EA/EAS • Select customers can get SA by one-time payment or by divided payment • Renewal is available in the case of continuity • Extra services can be provided in SA Program • http://www.microsoft.com/licensing/sa/ IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  23. MS Open Business & Volume • Two-year agreement • Easy program to purchase software licenses • From 5 licenses it can be required (Business) • No install kit, no manual (procurable separately) • Software Assurance can be ordered IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  24. MS Select • Licensing model for enterprises, only LAR partners sell • Min. 3-year contract • Customers’ forecast determine the discount level • Updated media are provided automatically until the agreement terminates • Educational and evaluation licenses for all product • Software Assurance is available IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  25. MS platform agreements - advantages • Simplified license management • The standard computers in the case of Windows, Office, and server CALs simplifies the license inventory to the number of PCs • Any version of the licensed software can be used • One agreement for all license • Upgrade periods can be handled easily • Contain the new version of the licensed software • Installations on demand IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  26. MS Open Value • Available from 5 licenses • No minimum reorder • Monthly order(notification), annual payment • Price protection is provided from the order to the termination of the agreement. • Types • Companywide option • Non-companywide option IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  27. MS Open Value Subscription • Similar to the Open Value, but the most important differences are: • Annual order (notification) and payment • At least 5 PCs • Subscription: it is not a perpetual license, if the agreement terminates, the use right terminates as well • When the OVS agreement terminates, the included software products can be purchased with perpetual use right; or the products can be transferred to a new Open Value agreement with SA IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  28. MS Enterprise Agreement • Perpetual license by divided payment: after 3 years the usage right transfers to the customer as a perpetual license • Educational and evaluation licenses for all the products IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  29. MS Enterprise Agreement Subscription • Similar to the EA, the most important differences are: • Subscription: it is not a perpetual license, if the agreement terminates, the use right terminates as well • When the EAS agreement terminates, the included software products can be purchased with perpetual use right IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  30. Licensing models of ther software vendors • Transactional and contractual licensing models • Adobe • Corel • Symantec • Etc. IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

  31. Thank you for your kind attention! IPR-INSIGHTS CONSULTING AND RESEARCH 1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731 E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

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