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The Software Process : Licensing Strategy

Ultimately, the end-goals of a project are defined and protected through permission statements and license agreements. A software license agreement defines how binary or source code is to be used, copied, distributed, and changed. Simply stated, it defines and protects the relationships which surround the research, results, and adoption of a project.

The TTO will work with the software group to develop software licenses that will fit with the overall goals of the group. For more detail on how different license agreements fit in with the life cycle of a software project, see the TTO bulletin, Software Licensing.

Research-Only License

A research-only license allows for distribution of source code or executables for research use only. Generally, these licenses can be available to both non-profit and for-profit institutions. The idea is to use research licenses to distribute the source code as widely as possible without allowing others to incorporate it into their commercial products.

When distributing early versions of software through your website, it is a good idea to ask for voluntary or mandatory registrations from anyone downloading the source code. This list of names can be useful to demonstrate the popularity of your software when marketing the software or submitting research grants. The TTO can assist you with a privacy policy statement, which tells people who register how their information will be used and under what circumstances they will be contacted.

Here are a few commonly used examples:

Source Code Agreement for Non-Profits

Research License Agreement for both non-profits and for-profits

Open Source and Free Software

Open source and free software licenses come in many varieties. For help in deciding which is most appropriate for your software, see the Technology Transfer Bulletin, Working with Open Source Software. The two basic varieties are free software such as the GPL, which requires that the licensee only distribute derivative products under the GPL, and open source such as the MIT-style license, which allows the source code to be incorporated into a closed, “proprietary product”.

End User Licenses

End User License agreements are appropriate for executable or web-based software that is not intended to be used in source code form. The end user license will specify the cost of the software and terms of use such as how many people are allowed to use it. By setting up a license and payment system with the TTO, software can be sold from your research group’s website. This would require someone in your lab to devote time to setting up your website for transactions and providing documentation. If the market is too small, it may not be worth the effort. If the market is too large, your lab could be overwhelmed by activity.

Distribution Agreement

The value of the software grows once there is an established user base. If a software product is very successful, it will be attractive to a distribution company or startup company. Distribution agreements are useful when the software technology needs to be packaged and delivered to end users in order to become widely used. The distributor is responsible for developing a polished product, writing documentation, providing maintenance and support. This allows your research group to concentrate on other projects or the next generation of the technology.

Start-Up License

Some software technology has high commercial potential, but may be too risky for an established company to license and develop. The Technology Transfer Office can work with you decide whether a start-up company could be formed based on the technology. The start-up would generally develop the raw code into a complete product and bring it to market. For more information, see the Technology Transfer Office Bulletin, Faculty Inventor Entrepreneurship and University Technology-Based Start-Up Companies.