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Software – Your Options When It Comes to Licensing

Date Published: 07th April 2008
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Author: Aazdak Alisimo RSS Views: N/A PRINT ASK ABOUT THIS ARTICLE
If you create software, you need to both protect yourself and make money off of it. You can sell directly to buyers or license it to third parties. In this article, we focus on the licensing option.

Make sure that you thoroughly understand the different variations of software licensing available before you attempt to market any product – if you are not sure, contact a lawyer. That said, the three main sorts are permissive, reciprocal, and reference. Each kind of license has a unique purpose, and some will suit various people better than others. Let’s begin with permissive.

Permissive licenses are exactly as they sound – permissible. This means that you can redistribute a source code without paying any royalties to the originally software creator. Additionally, this type will allow certain modifications to be made to the product without penalty. If a developer wants to use a multitude of code segments, a permissive license is the best option. However, a reciprocal license may come in handy as well.


The reciprocal license is an interesting sort. This particular type was created by the Free Software Foundation in order to allow a developer to use source code any way they like, as long as they follow certain restrictions and responsibilities (in turn, you will get to use their software as well). Within this category, there exist many different subcategories, so make sure that you read all the “fine print” in this situation (though the ideology behind the term is rather refreshing). Out of all the different types of software licensing, a reference license is the most restrictive.

Any source code protected by a reference license cannot be altered or distributed. This type of license is mainly used within a commercial setting, and it can be very useful when it comes to sensitive information, or top secret projects. It also allows for control over who gets to take a peek inside this type of product (this is the best type if you wish to keep your program only within certain circles).


As previously mentioned, make sure that you know exactly what type of license you need in order to adequately protect your product. The many different types of software licensing are only going to benefit you if you know what they involve. In most cases, it is best to seek a specialized lawyer that deals with this sort of information before you choose any license.

Aazdak Alisimo writes about software engineers for ProSoftwareEngineers.com.
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