Editing Software license (section)

== Proprietary software licenses ==
[[File:Ohhh, Shockwave (117804940).jpg|thumb|A brief, written-out [[beta test]] software license issued by [[Macromedia]] in 1995]]
The tendency to license [[proprietary software]], rather than sell it, dates from the time period before the existence, then the scope of software copyright protection was [[legal certainty|clear]]. These licenses have continued in use after software copyright was recognized in the courts, and are considered to grant the company extra protection compared to copyright law.{{sfn|Terasaki|2013|p=469}} According to [[United States federal law]], a company can restrict the parties to which it sells but it cannot prevent a buyer from reselling the product. Software licensing agreements usually prohibit resale, enabling the company to maximize revenue.{{sfn|Terasaki|2013|pp=469-470}} 

Traditionally, software was distributed in the form of binary [[object code]] that could not be understood or modified by the user,{{sfn|Boyle|2003|p=45}} but could be downloaded and run. The user bought a perpetual license to use a particular version of the software.{{sfn|Clohessy ''et al.''|2020|pp=40-41}} [[Software as service]] (SaaS) vendors—who have the majority [[market share]] in [[application software]] {{as of|lc=yes|2023}}{{sfn|Watt|2023|p=4}}—rarely offer perpetual licenses.{{sfn|Dempsey |Kelliher|2018|p=48}} SaaS licenses are usually temporary and charged on a pay-per-usage or subscription basis,{{sfn|Dempsey |Kelliher|2018|pp=48, 57}} although other revenue models such as [[freemium]] are also used.{{sfn|Dempsey |Kelliher|2018|pp=61-63}} For customers, the advantages of temporary licenses include reduced upfront cost, increased flexibility, and lower overall cost compared to a perpetual license.{{sfn|Clohessy ''et al.''|2020|pp=40-41}} In some cases, the steep one-time cost demanded by sellers of traditional software were out of the reach of [[Small and medium-sized enterprises|smaller business]]es, but pay-per-use SaaS models makes the software affordable.{{sfn|Dempsey |Kelliher|2018|p=2}}

===End-user license agreement (EULA)===
{{main|End-user license agreement}}

Initially, end-user license agreements (EULAs) were printed on either the shrinkwrap packaging encasing the product (see [[shrink-wrap contract]]) or a piece of paper. The license often stipulated that a customer agreed if they did not return the product within a specified interval.{{sfn|Corbett|2019|p=455}} More recently, EULAs are most commonly found as [[clickwrap]] or [[browsewrap]] where the user's clicks or continued browsing are taken as a sign of agreement. As a result of the end of physical constraints, length increased.{{sfn|Kim|2016|pp=12, 21}} Most EULAs have been designed so that it is very difficult to read and understand them, but easy to agree to the licensing terms without reading them.{{sfn|Terasaki|2013|p=469}}{{sfn|Corbett|2019|p=455}} Regardless of how easy it is to access, very few consumers read any part of the license agreement.{{sfn|Bakos ''et al.''|2014|p=1}}{{sfn|Ben-Shahar |Schneider|2014|p=68}} Most assume the terms are unobjectionable or barely notice agreeing while installing the software.{{sfn|Terasaki|2013|pp=485-486}} Companies take advantage of consumers' inattention to insert provisions into EULAs.{{sfn|Corbett|2019|pp=456-457}} 

Proprietary software is usually offered under a restrictive license that bans copying and reuse and often limits the purchaser to using the software on one computer.{{sfn|O'Regan|2022|p=394}}{{sfn|Morin ''et al.''|2012|loc=Proprietary Licensing}} [[Source code]] is rarely available. Derivative software works and [[reverse engineering]] are usually explicitly prohibited.{{sfn|Morin ''et al.''|2012|loc=Proprietary Licensing}} Many EULAs allow the vendor to collect information about the user and use it in unrestricted ways.{{sfn|Carpenter|2023|pp=485-486}} Some EULAs restrict the ability of users to exercise copyright over derivative work made using the software, such as creative creations in the [[virtual world]]s of [[video games]].{{sfn|Ahuja|2016|p=381}}{{sfn|Corbett|2019|p=456}}

Most disclaim any [[software product liability|liability]] for harms caused by the product,{{sfn|Carpenter|2023|pp=480-481}} and prevent the purchaser from accessing the court system to seek a remedy.{{sfn|Carpenter|2023|pp=481-482}} Furthermore, many EULAs allow the vendor to change the terms at any time and the customer must choose between agreeing or ceasing use of the product, without getting a refund.{{sfn|Carpenter|2023|p=485}} It is common for EULAs to allow unilateral termination by the vendor for any number of vague reasons or none at all.{{sfn|Carpenter|2023|pp=482-483}}

EULAs, almost always offered on a [[Standard form contract|take-it-or-leave-it basis]] as a non-negotiable condition for using the software,{{sfn|Carpenter|2023|p=478}} are very far from the prototypical contract where both parties fully understand the terms and agree of their own free will.{{sfn|Corbett|2019|p=460}} There has been substantial debate on to what extent the agreements can be considered binding. Before 1996 in the United States, [[clickwrap]] or [[browsewrap]] licenses were not held to be binding, but since then they often have been.{{sfn|Terasaki|2013|p=471}}{{sfn|Kim|2016|pp=12, 21}} Under the New Digital Content Directive effective in the European Union, EULAs are only enforceable to the extent that they do not breach reasonable consumer expectations. The gap between expectations and the content of EULAs is especially wide when it comes to restrictions on copying and transferring ownership of digital content.{{sfn |Oprysk|Sein|2020|pp=620-621}} Many EULAs contain stipulations  that are likely unenforceable  depending on the jurisdiction. Software vendors keep these unenforceable provisions in the agreements, perhaps because users rarely resort to the legal system to challenge them.{{sfn|Corbett|2019|p=461}}

===Service-level agreement (SLA)===
{{main|Service-level agreement}}
Service-level agreements are often used for [[enterprise software]] and guarantee a level of service, such as software performance or time to respond to issue raised by the customer. Many stipulate financial penalties if the service falls short of the agreed standard.{{sfn|O'Regan|2022|pp=151, 219, 224, 405}} SLAs often cover such aspects as availability, reliability, price, and security using quantifiable metrics.{{sfn|Qazi ''et al.''|2024|loc=Performance evaluation parameters}} Multi-tier SLAs are common in [[cloud computing]] because of the use of different computing services that may be managed by different companies.{{sfn|Rana | Ziegler |2010|p=188}} SLAs in cloud computing are an area under active research {{as of|lc=yes|2024}}.{{sfn|Qazi ''et al.''|2024|loc=Conclusion}}