7.6.1 Software Licensing

Learn how to properly navigate the sea of software licensing and how to protect you, your career, and the organization you (might) work for.

There are two general models of software licensing:

• open source software
• proprietary software These two types of software are developed in two different processes.

Proprietary Development Model (PDM)

When software is developed using a PDM, the steps often are followed as below:

• customer need is identified
• a product requirements document (PRD) is drafted
• programming commences and checked when finished
• bug fixing and testing
• finished product is sent out
• product refinement loop starts

Proprietary licensing makes sure that the organization that developed the software. When customers purchase the software, they are not purchasing rights to the software, they are purchasing a license to use the software provided by the developer. Modifications to the source code are prohibited, and the license is enforced through an End User Licensing Agreement (EULA).

Open-Source Development Model

The primary organization behind the software will have other methods of making money when they intend to give their product away for free. They might just ask people for contributions to fund development of the app. Other times they might release the product for free, but charge for technical support. Another method that is used is called training contracts. The organization charges the user to teach them how to use their software. This often results in two versions of the same product, one paid and one free.

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