You probably already knew that a software license is a contract between an owner of computer software and an end user of that computer software – sometimes called an End User License Agreement or “EULA” – that specifies the scope of the rights granted by the owner to the user.  But what you may not know is the meaning behind the many different types of software and licenses out there.  Here are just a few examples of the types of software and licenses typically used:

• “Free software” or “open source software” is software which can be used, copied, studied, modified and redistributed without restriction.  “Free” in this sense, however, doesn’t mean “gratis” but rather “free to do with as you please.”  The usual way for software to be distributed as free software or open source software is for the software to be accompanied by a software license and a copy of the source code of the software.
• “Freeware,” by contrast, is software that is available free of charge but is nevertheless generally proprietary, and therefore restricted as to its use.  The only criteria for software being classed as “freeware” is that it be provided to users at no cost, thus freeware can be subject to any licensing terms its owner deems necessary.
• “Shareware” is a marketing method for software, whereby a trial version is distributed in advance and without payment, either by downloading from the internet or, in some cases, from magazine cover-disks.  A shareware program is often accompanied by a request for payment, and the software’s distribution license often requires such a payment, after a set period of time has elapsed following installation.
• “Click through” and “shrink wrap” are terms used for software licenses that require a user to agree to the terms of the EULA by either clicking an “ok” or “I agree” button on a dialog box or pop-up window for downloaded software, or by simply removing the shrink wrap packaging coating retail software boxes (although the latter is not necessarily exclusive to software sales and has come under judicial scrutiny).  The content and form of every “click through” or “shirk wrap” agreement will vary widely, and the terms should be (but rarely are) reviewed before using the software.

Bonus: Did you know, the U.S. Copyright Act, 17 USC § 117, permits the owner of a copy of a computer program to make copies necessary for the use or backup of a computer program?

–Matt