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Licensing Software to Individual vs. Corporation?

FortKnox asks: "After reading the story of the current Slashdot interviewee, I've been pondering software selling schemes/licensing. We've all heard the pro-piracy slogan: 'A $2,000 program pirated by a 13 year old, with a net worth of $13.50, deprives the publisher of $0.' Which makes perfect sense. But piracy opens up the ability to get the product for free if you CAN afford the product. Usually, the biggest 'piracy offenders' are people grabbing software designed to be bought by corporations (engineering CAD programs, 3D Studio Max, etc...) so the individual never has a chance to learn the product. My question is, what kind of selling schemes/licenses would work to allow the individual to learn and use the product, but still allow the publisher to make a profit from corporate sales?"

"Microsoft has a nice licensing idea for colleges. They sell 'student' licenses for $5 for any MS product (I got VC++6 for $5). The stipulation was that I could not commercially sell anything I developed with the product. This was fine by me. It gave me the experience with VC++ so that I could go to an employer and tell them that I've used the product at home and am comfortable using it.

A big benefit for the publisher is that you get customers of the product right away, who are more likely to either buy it when they belong to a company or put in a word to switch to it from a competitors product. Why isn't this type of license used more often? I could see many open source projects would highly benefit from licensing like this, and the publishers advantage is that they could even use it as free marketing (a completely fictional example - KDE3, designed with Rational Rose, icons made by 3D Studios Max, testing done with JUnit and WinRunner).

So, are their any other licensing/selling schemes that would allow the individual to use the product, and the publisher still make a profit on corporate sales?"

12 of 28 comments (clear)

  1. Malaysian Copyright law by TheLink · · Score: 2

    No need for such licensing schemes here in Malaysia (yet).

    Excerpt from Malaysian copyright law:
    http://www.kpdnhq.gov.my/ip/copyright.html

    The Copyright in a work is infringed when a person who, not being the owner of the copyright,
    and without licence from the owner, does or authorises any of the following acts:-
    (some clauses omitted for clarity)

    (vi) possesses, otherwise than for his private and domestic use, any infringing copy ;

    (viii) imports into Malaysia, otherwise that for his private and domestic use any copy which if
    it were made in Malaysia would be an infringing copy ;

    ---
    So it seems if it's for private and domestic use it's ok.

    --
  2. licensing by Khopesh · · Score: 2

    this is rather similar to a recent article on warez.

    particularly this post, which mentions how Adobe allowed piracy to nullify the cheaper competition.

    as to more moral licensing, I have always believed that the GPL can be modified to include clauses for corporate, educational, and governmental customers (all different pricing structures of course). this way the customers that can afford it must pay some small fee.

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    1. Re:licensing by leviramsey · · Score: 2, Informative
      as to more moral licensing, I have always believed that the GPL can be modified to include clauses for corporate, educational, and governmental customers (all different pricing structures of course). this way the customers that can afford it must pay some small fee.

      Considering that that modification would place the GPL into the category of "Non-Free Licenses", I highly doubt it.

      Relevant quote from the Free Software Definition:

      A free program must be available for commercial use....
  3. It's quite common by sql*kitten · · Score: 3, Informative

    A big benefit for the publisher is that you get customers of the product right away, who are more likely to either buy it when they belong to a company or put in a word to switch to it from a competitors product. Why isn't this type of license used more often? I

    This sort of licensing scheme is quite common, when I was a student I got MATLAB and CodeWarrior, in addition to MS Office under these terms. Unfortunately it did not result in more sales for those companies when I graduated, although if I'd gone into Engineering, it would have :-)

  4. WS_FTP by Apreche · · Score: 3, Informative

    the license on software like WS_FTP or Sygate's firewalls is great. They have fully functional versions of their software available for free to home users that will continue working forever. But if a business user wants to use their software they have to shell out the cash. Keep in mind these aren't open source, but that really doesn't make a difference in this case. I really wish more software was like this.

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  5. Prohibitive cost to value ratio by haplo21112 · · Score: 2

    For the most part the most functional software products have an extremely high cost to vlaue ratio...
    The solutions that publishers have come up with for these issues are not true acceptable. The cripiled versions...missing features, and functions(what the hell is the point of playing with it if you can't save your work, that one really irks me)...or the differnt leveled versions, professional, enterprise, architect...big deal I can but the pro edition for $200, but then i get a book on the product and find out the functions, features, and components I want or only in architect for $1500.00...that doesn't help...

    MAKE one version, charge a reasonable price for it...$49.95...then if I do anything truely useful with it charge a royality for having written and compiled my code, or drawn my picture, etc with it...say 2% of the net profit I got from using your product to make my product...as reprehensible as forced registration is this might be a reasonable place for it...the registration code for the product would be burned into the anything that comes out of the product allowing things to be traced back to the end user/corporation.

    --
    Power Corrupts,Absolute Power Corrupts Absolutely, leaving one person(group)in charge is absolutely corrupt.
    1. Re:Prohibitive cost to value ratio by haplo21112 · · Score: 2

      Hey just suggestions...I really see no way out of the morass we are all in at this point...

      The basic premise though is software costs to much...the truth is if GCC was supported and was a functional on windows as it is on Unix at least the compiler race would probably have some competition to control price....
      The graphics race is a little harder, but gain if there were versions of gimp, imagemagick, and Blender that worked as well in windows as in Unix there might be more of a horse race there too...
      Its an interesting thought to bring up...
      We all want to see more main stream apps on linux, bsd, etc...however perhaps the other way to go is if the non main stream apps we all use as a replacement went the other way...? Its an interesting thought anyway...

      --
      Power Corrupts,Absolute Power Corrupts Absolutely, leaving one person(group)in charge is absolutely corrupt.
  6. QNX by JohnTheFisherman · · Score: 3, Informative

    QNX does this - free *nixy RTOS for non-commercial use.

  7. Alias|Wavefront knows the answer by Sentry21 · · Score: 2

    Check out the free download> of Maya. You get Maya Complete, a $2,000 USD program (if you buy at their online store) for free, for certain (educational) uses, minus a few features (plugins, I think), and plus watermarks on your stuff - certainly enough to learn on though.

    A very sane, very educated philosophy, if you ask me.

    --Dan

  8. Umm, they're already doing it... by anthony_dipierro · · Score: 2

    My question is, what kind of selling schemes/licenses would work to allow the individual to learn and use the product, but still allow the publisher to make a profit from corporate sales?

    Simple. Make everything illegal, and then selectively enforce against corporations, but not individuals. That's pretty much what companies do already, and it's why you're a sucker if you follow every license agreement to a T.

    This is what Netscape did with Navigator for instance. They made it illegal to use the software after a 30-day trial period, knowing that individuals would ignore that restriction en masse, while corporations would be forced to pay up or face the BSA.

  9. Oracle by Darkstorm · · Score: 2

    Well, I'm not sure if other companies have thought of this, but Oracle pretty much gives their software to developers. You have to register with them, but you get a development style license that pretty much lets you learn it. The download are the full product, not a limited version (I have the full 9i setup at home). If you want to use it for real then you have to pay for it. Basicly the developers who want to learn it can, without paying the mega $$$ to do so.

    Too bad other companies don't feel the same way about developers.

    --
    If ignorance is bliss, the world is full of blissful people
  10. GCC, Blender, GIMP, and ImageMagick for win32 by yerricde · · Score: 2

    the truth is if GCC was supported and was a functional on windows as it is on Unix

    MinGW, a port of GCC to Windows, can compile just about any non-MFC app that MS Visual C++ can.

    The graphics race is a little harder, but gain if there were versions of gimp, imagemagick, and Blender that worked as well in windows as in Unix there might be more of a horse race there too...

    Blender works on Windows. So does GIMP, at least at the level of Paint Shop Pro. So does ImageMagick. (However, last time I tried IM, it claimed to read XCF but could not read its alpha channels.) So does a free (LGPL) office suite.

    --
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