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A software licenses review is a systematic and objective examination of the license terms of a software package or product. It typically involves assessing the organization’s compliance with the license terms, verifying the number of licenses in use, and ensuring that the organization has the necessary rights to use the software. It helps ensure that your organization complies with the applicable license terms and thus avoids potential legal risks.

A software license review 's goal is to ensure that you're using the software in compliance with its license terms.

A software license review can be performed for any type or size of an organization, whether it's an enterprise, mid-sized business, or startup.

Types of Software Licenses

Software licensing is the method of assigning permission to use the software. It is usually based on a single copy of software with multiple users.

There are several types of software licenses, the primary of which are explained below:

Public Domain

This type of license allows you to do whatever you want with the software. Most have minimal or no restrictions on how it may be used or distributed. Some public domain licenses may impose certain conditions or requirements. In some cases, the copyright holder will state that they're transferring ownership of their code to the public domain, but this isn't always the case.


Permissive licenses allow you to use the software in any way you like as long as you follow certain conditions that protect the original author's copyright. They try to ensure that anyone who copies the source code respects their rights. This can be done by requiring that modified versions of the code be released under similar terms or by requiring attribution in some way (such as including copyright notices in derivative works).


The LGPL software license allows you to use the licensed source code in your software. But it also requires you to share your new program's source code with its users.

The LGPL was designed to allow developers to create products that integrate with others' products as long as those other products follow the same rules. For example, if you develop an application that uses LGPL-licensed code and then uses it in your product, you must release any changes you make to that LGPL-licensed code under LGPL terms.


Copyleft is a type of licensing for software and other intellectual property. Copyleft licenses typically offer the right to distribute copies and modified versions of a work and require those who distribute such copies to make the source code available to recipients under the same terms.


A proprietary software license is a legal instrument that grants the end user the right to use the program. Proprietary licenses for software vary greatly in their terms, even when they are similar. Such licenses can be compared to a contract that specifies the user's rights and imposes restrictions on how the software can be used.

Most proprietary software licenses are expressed in human-readable text, but some include detailed conditions to limit how the software can be used. Proprietary software licenses typically impose restrictions on the number of users or installations.

Why Should You Consult a Lawyer for Software Licenses?

Software licenses are not always simple. They can be difficult to understand and sometimes even contradictory. This can make it hard for you to know whether or not your use of a piece of software is legal and whether you are in compliance with all of the terms of the license agreement.

A lawyer can help you navigate this area, particularly if you are facing legal action because of an alleged violation of a software license agreement. A lawyer can also help you negotiate a favorable resolution through mediation or negotiation with the other party in the dispute.

Here are some reasons why consulting with a lawyer might be beneficial:

  1. You want to ensure you comply with all applicable laws and regulations.
  2. You need help interpreting terms in a license agreement or contract.
  3. You want to ensure that your use of the software complies with its intended purpose.
  4. You want to ensure that your use does not infringe or violate any copyright or other legal right.
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Things to Keep in Mind in a Software License

When you buy a piece of software, you get the right to use it for a certain period. But did you know that there are many different types of software licenses? And that each license comes with its rights and limitations.

Here are 5 things to keep in mind when buying software:

  1. The difference between perpetual and subscription licenses
  2. The difference between shrink-wrap licenses and click-wrap licenses (aka end-user license agreements)
  3. The difference between single-user and multi-user licenses
  4. How long does your license last for (and whether or not it can be renewed)
  5. What happens if you stop paying maintenance fees (or if the company goes out of business)

Key Terms

  • Privacy Policy

    A privacy policy is an important part of your website that tells visitors what you will do with their personal information. It is a contract between you and your visitors, so you must stick to the rules in this document.

  • Limitations of Liability

    The limitations of the liability section are where you list the exceptions to your product's warranty. This is where you would list any third-party products used in conjunction with your software and any disclaimers regarding those products.

  • Subscriber Agreement

    The subscriber agreement is a contract between the customer and the software provider. It defines the conditions of use, including pricing and payment terms, as well as any limitations on use.


Software license reviews are very important for companies using any software. It is necessary to protect your business from legal issues and ensure that you are legally using the software.

Software license review can protect your company from various legal problems like copyright infringement, misuse, and other issues. The best way to avoid these problems is by engaging a professional software license review lawyer who can help protect your business by reviewing all the software licenses of your company and making sure that there are no lapses in any of them.

ContractsCounsel provides legal services for software licensing reviews and other legal matters related to software development. Their contract attorneys have extensive experience working with clients in all industries, including technology, pharmaceuticals, healthcare, manufacturing, entertainment, and more.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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