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4/60 Park Street, Sydney NSW 2000, Australia
Contact Us

IT Licence

What is an IT Licence?

It enables you to use a software within the frame of manners predefined by the originator. The originator can allow users in individual cases to use the program in different kind-of-use. This given right is called servitude. In this case you can refer to servitude as “licences”.

Proprietary Software

The term “proprietary” is in the area of software licences equal to “copyrighted”. Consequently proprietary programs may only be used with an agreement.
Even open-source programs, e.g. programs with a General Public Licence, are proprietary software, because they were licenced and are subject to restrictions.

Major and Minor Versions

Each software is basically delivered as a so called major version. Each major version contains special possible applications. Naturally the latest major version can do more than the previous major version. The publisher releases usually updates within the major version, so called minor versions, which should fix mistakes and assure safety. In numbers it could be displayed like in the following way: the current major version is called 6.0, therefore the first minor-version would be called 6.1, the second 6.2 and so on. The next major version would be begin with 7.0.
Your license authorises you for just a certain major version and the corresponding minor versions. Normally you are not entitled to claim the latest major version. In this case the software supplier has special upgrades ready. A license upgrade refers to a major version and is just working in combination with the corresponding license. Updated ones are cheaper than a complete new one because of the customer connectivity.

IT Licence Agreements

These agreements of the software provider indicate the conditions and rules for the legal usage of the program. There are various types of license agreements with different conditions for users, including:

Individual IT Licence

  • with an Individual Licence the user has the right to use the program/software on exactly one workplace of the end user.

Multiple Licence

  • with a Multiple License the user has the right to use the program/software on several computers at the same time

Developing Licence

  • with a developing licence the user has the right to use the program/software to develop new program parts, modules or applications.


  • at the CPU-licence the authority of usage of the program/software refers to just one certain processor.
    For one thing the processor-license should prevent the passing on of the program/software, for another thing there should follow a further reward if the hardware is raised.

Cluster Licence

  • Cluster licences are ones that don’t restrict the usage of the program/software to one server but they permit the usage to a package of a previous fixed number of individual computers.

Floating Licence

  • with a Floating License the number of users, which have access to the program/software at a time, is determined.
    The cluster licence is often combined with the floating one.

Update Licence

  • with the update one the user just buys the update or the minor-version of a program/software.
    Consequently, the user doesn’t have the right to use older versions.

Partial Use Licence

  • the Partial Use License determines which parts of a software-package may be used.

General Public Licence (GPL)

  • GPL is published from the Free Software Foundation (FSF) and is a free-software-license with copy left for licencing of free software to unify and share free accessible software. The GPL allows to copy and share it. But it’s forbidden to change or modify the text of it. By this it will be ensured that the rights and duties, which are guaranteed by the GPL, can’t be restricted. The FSF allows the creation of new licenses based on the GPL, as long as they don’t refer to the GNU-project.

Are you interested in finding out more or need any legal advice? If so, then feel free to contact our experienced lawyers.

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