How Does a Software License

Agreement Work

     The author of the software code frequently owns the code. In cases where the developer of the software is an employee of a company, the company is usually the author. The owner of the code controls who gets to use the code and how the code is used. The software license may define who can use the code and in what circumstances.
     Standardized "end user license agreements" (EULAs) are common for most consumer and commercial mass produced software. When someone "purchases" software, the owner of the software typically requires the user to agree to license terms by clicking to indicate agreement to a set of terms that is required before the software can be installed or operated on a computer. The user is not really "purchasing" the software, but is licensing the software.
     When specialized or customized software is involved, the license is often a signed, written agreement that includes terms that are customized to fit the needs of the parties to the license agreement.