Software programmers write software for free. Though the freeware is 'free' the authors can still get benefited by placing advertisement in their software programs. Giving software for free is another way to promote one's software/software product to gain the popularity. Freeware does not contain any information about licensing and end user agreement.
Open Source License
The open source is free software that anyone can download, modify and use. The users can even use the open source code for commercial use as long as they agree to open source licensing agreements. Typically it involves to include the original copyrights such as GNU General Public License 3.0 etc.
Many organizations are leveraging the 'openness' of the open source software, reduce cost and modify the software to meet their requirements keeping all the open source licensing agreements in mind.
Single User License
In this type of software licensing mechanism, the software has to be used by a single person meaning that a single computer system. There are two mechanisms to implement this type of licensing mechanism, bind the license with user ID or bind the license with Host (computer system) id. Host is something like a MAC address of the system. Host ID is unique across all computers. Have a look here (http://www.mathworks.com/support/solutions/en/data/1-171PI/) to see Host ID or Machine ID. Usually you are allowed to install the software and upon installation the software generates the HOST ID based on certain parameters and locks that HOST ID with that computer hardware and license file so generated contains the HOST ID.
Multi-User/Shared License
A license can be used by defined set of users. If used by more number of people than allowed, its a license violation and will be notified to the software vendor.
This is implemented by checking the concurrent use of the license. Note that if the license is bond to the user ID, the user can use the software on different machines and this is not the case if the license is bond to the Mac-ID/Host Id of the computer system.
Floating License
The floating license as the name indicates 'floats' across different users. The floating type of license can be used by many people however if the license is being used by a person, then its not usable by other people. Typically the license lives in a server and upon starting the software, it will ask you for license server and license key details to proceed.
Limited/Unlimited Licenses
Limited type of licenses are limited to limited number of computers and may have extra agreements such as software should not be used for commercial use whereas unlimited license type is that there is no limit on number of computer systems where the software can be run but should be used in a single physical location such as School/College/Hospital etc.
Conclusion
Licensing mechanisms are there as software marketing strategies and significantly affect the software sales and hence its very important to carefully select a licensing strategy for the customers. The licensing can be customized to the extent that business demands. For example, each feature of the software can be made to check for feature license for the people who write and sell software. And for all software users it is very essential to read and understand all the licensing agreements before purchasing the software. Also have a look at Creative Commons License types.
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