Can you transfer a software license?

A few years ago I was at a trade show and saw a booth advertising "software transfers." This caught my attention because it sounded like something that might help me out with an ongoing problem. At the time, I had recently bought a laptop but discovered there were some problems with the operating system. They told me they could fix those issues, but only if I paid them money first. That's when I decided to research this idea more thoroughly.

I learned that companies sell their software as part of a package deal called a software license or just license. A license allows users to use some type of application on multiple computers. The term usually refers to the right to access a specific program online or through other means such as downloading the program onto your own hard drive or using it via CD-ROM.

Since licensing has become so common among businesses today, many people are curious about what happens when a license expires or changes hands -- especially since there have been cases where the original owner tried to pass off his/her rights to someone else. In Cincom Systems, Inc v Novelis Corp., 581 F.3d 431 (6th Cir. Sept 2009), the Sixth Circuit Court of Appeals upheld a $460,000.00 intellectual property infringement claim in favor of a software licensor against a business for trying to transfer its software license to a new company created by a merger.

The case involved a technology firm named Cincom which produced a device known as the TAD - Total Access Device. It allowed consumers to download digital content without having to pay royalties to copyright holders. Cincom sold these devices under several different brands including PowerDVD Business Edition, RoboGuide, Nuance PDF Creator, and FilmRora.

When Cincom went bankrupt in 2006, its assets were acquired by a company called Novelis who continued selling the same products under the name Nuon Technology Solutions. However, they did not renew any existing licenses, meaning anyone who already owned a Cincom product would no longer receive updates or support.

To make matters worse for customers, Nuon made it clear that they intended to discontinue sales of all products licensed by Cincom. According to the court, when Novelis began offering the same products again, customers noticed that the prices being charged were significantly higher than before. When customers questioned why, they received responses saying they weren't going to renew the licenses anymore, and instead wanted customers to buy new ones. Customers were also given the option to purchase a separate license for every single device they had purchased previously.

This led to the lawsuit filed against Novelis by Cincom. As mentioned above, the issue wasn't whether or not a customer should get a new license. Instead, the question was whether or not customers still deserved to continue receiving updates and support after buying a product from Cincom. If they didn't, then the company would owe damages for failing to provide proper notice beforehand.

At trial, the jury found that Novelis failed to properly notify purchasers that the licenses wouldn't be renewed, and awarded Cincom over half a million dollars in damages. On appeal, however, the judge reversed this decision and dismissed the claims entirely. He said that while the law does allow a licensee to give up her right to future updates and support once a contract ends, she doesn't have the ability to revoke the license itself.

He noted that even though a person may sign away her right to future updates and support, she cannot actually take back ownership of the software. Therefore, he concluded that any attempt to transfer a license would amount to nothing more than fraud and theft. While we applaud the ruling, it seems somewhat unfair to force someone into signing away their legal rights to something that belongs to them simply because they don't want to keep paying for it.

So now I know that I'm legally prohibited from passing along my software license to a friend. But what if I've already done it anyway? Can I just ignore the fact that I violated the terms of the license? Or will I end up getting sued too? Let's find out...

Who owns the software license?

Software licenses fall into two main categories: perpetual licenses, and non-perpetual licenses. Perpetual licenses are more expensive, require annual payments, and offer better protection against unauthorized copying compared to non-perpetual licenses. For example, if you buy a DVD player that comes with a perpetual license, you won't need to worry about keeping track of the expiration date of your license. Also, if you try to share your DVD player with friends, you'll never run into trouble.

Non-perpetual licenses work differently. These types of licenses expire after a certain period of time, typically between three months and one year depending on the type of product. After your license expires, you're free to either cancel it or decide to leave it active. Either way, the next person who buys the item gets the full benefit of the license.

If you already transferred a non-perpetual license to someone else, you shouldn't worry much about the situation unless the recipient tries to transfer it somewhere else. Although the law prohibits the act of transferring a license, there isn't anything stopping him/her from doing so. Even if you send them an email telling them that they must stop attempting to transfer the license, it's unlikely they'd listen.

Can you resell software license?

Most likely, yes! You can sell your license at least temporarily until the current user decides otherwise. Once the initial buyer stops purchasing the product, you can start looking around for a potential replacement. Keep in mind that reselling software licenses requires special permission from the author, so you'll probably want to contact the manufacturer directly.

As long as you follow the rules set forth by the publisher, you should be fine. Just remember to tell everyone concerned that you aren't authorized to resell the license. Otherwise, you could wind up facing charges yourself.

Can software licenses be revoked?

Yes, absolutely. Some publishers prohibit license revocation altogether, but others allow it within certain limits. One good example of this is Adobe Photoshop CS5 Extended. Unlike their previous versions, the latest version contains a clause stating that the purchaser cannot pass along the license to another party.

Another thing to consider is that although a license may remain valid indefinitely, it doesn't mean that you can permanently hold onto it forever. There are times when it becomes necessary to return the license, and you may lose it if you fail to comply.

For instance, let's say the license states that the product is protected by copyright laws and cannot be transferred outside of the country where it was originally distributed. Because you live overseas, you must return the license to the seller upon request. Failure to do so could land you in serious hot water.

What is a software reseller agreement?

If you plan to resell a piece of software, make sure that you have written authorization from both parties. Sometimes, publishers include clauses stipulating that the sale of the product is limited to one particular geographic region. If the license holder doesn't agree to this restriction, s/he may refuse to authorize you to re-sell the product.

Some publishers charge additional fees whenever you enter into a second transaction involving the product, regardless of whether or not you intend to transfer the license. Other publishers charge extra fees for each individual unit of the product.

Other things to look out for include restrictions regarding resale price, number of units per order, minimum quantity requirements, and shipping costs. Before agreeing to any of these terms, ask the publisher for clarification. And if possible, negotiate to avoid these limitations.

Finally, make sure that you understand the conditions under which the license can be terminated. Some publishers reserve the right to terminate the license unilaterally, whereas others require the consent of both parties. Be wary of agreements that state the license automatically terminates if the user fails to meet certain criteria, such as paying late fees or making insufficient monthly payments.

Hopefully, you're starting to see why the courts ruled the way they did. It's impossible to completely protect yourself from piracy, but it's important to read the small print very carefully and always check that you understand the conditions attached to the license.

If you own an app or program that's worth more than free on your computer and want to make sure it stays there after the purchase is complete, then you'll need to get a license for it -- but what if you don't have access to the original disk or CD? Can you transfer your license to a different PC? Or will the licensing authority find out about it? Well, as long as you follow all legal procedures when doing so, then no, you cannot legally move licenses between computers. But before we start, let's look at some common ways people attempt to transfer their licenses without actually following proper procedure.

First, many users simply try to duplicate a license file onto another system. This isn't going to work because each time you install a software package, Windows encrypts the installation files with a unique key which is tied only to that specific device. You cannot use these encrypted files across multiple systems unless they're decrypted first using the same encryption keys used to create them. If a user tries to simply copy over a license file that was previously stored on one machine to another, this won't be possible since Windows doesn't allow this type of data duplication.

Second, some users who are trying to transfer licenses also mistakenly believe that they can "transfer" a license via email. While most companies like Adobe make installing licenses easy enough, you still must physically go into the installer window to download any updates or patches. And while it may seem convenient to just send a link through email, this method has its drawbacks too. For example, if someone sends you a link to update a PDF document, the person receiving the link needs to open the website where the PDF resides in order to view the updated version. However, if the recipient is not online at the moment, he/she could receive the incorrect information due to outdated links within the document itself. Also, if someone attempts to modify the software package after downloading the link, he/she would likely violate the terms of service agreement of the site hosting the material. Even worse, sending such a link can expose personal details of the sender, including credit card numbers. Since emails aren't always secure, it's best to avoid sending sensitive documents or other private information over email. Instead, stick to physical media whenever possible.

Third, some users think that they can simply "move" a software license to another location. In reality, moving a license involves much more than just copying it somewhere else. Moving a license means creating a brand-new set of keys that tie back to the original and replacing those keys with the ones that were originally linked to the previous license. To accomplish this task requires a bit of technical knowhow, but it can easily be done.

Now that you understand why it's impossible to move a license, let's take a closer look at how it's done properly.

How do I transfer software license to another computer?

When purchasing a piece of software, there usually comes along with it an accompanying license that allows the owner to run it on up to two devices. It's important to note that once a license expires, it becomes invalidated and cannot be reissued for whatever reason (e.g. change in ownership). Therefore, if you plan on running the program on more than two machines, you should renew your licenses every year or sooner.

To keep your licenses valid, you should create backups of them to external storage drives or DVDs. These copies should never leave your possession. When you upgrade versions of your programs, be sure to replace your current license with the latest version that came packaged with the new release.

As far as methods go, here are three options available to you:

Option 1 - Use Your Product Keys

The simplest way to transfer a license is to retrieve your product keys directly from the manufacturer. Many manufacturers provide a direct link to their customer support page or even offer live chat services. Once logged in, you should see a section near the bottom labeled License Information & Licenses. From this point, click on the Download tab next to the Software Name field. Here you will find a list of all the products associated with the name listed under the table. Clicking on the link next to the desired product will bring you to a screen where you can enter the serial number or registration code provided by the vendor. After entering both codes, hit Submit.

A few minutes later, you should receive a message stating that your license has been successfully transferred.

Option 2 - Send Us A Copy Of The Original Disk

Some vendors include a second option for obtaining your product keys. This process works similarly to Option #1 above except instead of having to manually input your serial number, you can upload a picture of the original packaging containing your serial number. Most times, you can attach this image either as a jpeg or png format to a text file attached to an e-mail sent to our support team.

After reviewing the request, our team members will contact you shortly afterwards confirming receipt of the image and asking for further instructions. We will then proceed to obtain your license and issue it to the requesting party. Note that depending on the nature of the support requested, this process might require additional steps beyond merely providing us the photo.

Option 3 - Transfer Via USB Drive

For certain applications, especially older games and utilities, you may be able to utilize a backup DVD or flash drive to store all of your licenses. By making a full backup of your existing hard drive, you can use the resulting ISO file to reinstall everything exactly as it was prior to installing it on your primary machine. You can then restore your backed up drive to your main computer.

By performing all operations required by the application, you can generate a brand-new license that remains valid until the expiration date specified during the initial purchase.

This article discusses some of the pros and cons of transferring licenses between PCs. If you'd like to learn more, check out our guide on How to Move Programs Between Computers for more info!

In Cincom Systems, Inc v Novelis Corp., 581 F.3d 431 (6th Cir. Sept 2009), the Sixth Circuit Court of Appeals upheld an intellectual property infringement verdict and award of damages against a business for attempting to sell software it had acquired through acquisition and then tried to resell without paying royalties. The court found that the sale was "an unauthorized attempt to circumvent the licensing agreement between [the plaintiff] and [the defendant]." Id. at 435.  The defendant's argument that this constituted only a breach of contract rather than copyright infringement failed because "[t]he Copyright Act protects both the tangible expression embodied in a copyrighted work as well as the intangible elements essential to protection of the underlying rights." Id. at 436. In other words, the act of selling the software infringed on the owner's exclusive right under 17 U.S.C. § 106(1) to reproduce the work.      

This case illustrates the importance of obtaining permission before making any changes or modifications to existing works. If you want to use someone else’s content, even if it is free, you must first obtain written permission to make derivative uses of their materials. This is called “copyright law.” It allows creators of original material to protect their creations and prevent others from using them. Without copyright protection, no author could stop people from copying her book, movie, song, etc. They would have to find some way to get paid for their work. But when we are talking about software, there is more involved. Software has many components including source code, installation files, manuals, documentation, support information, and so forth. These all need to be protected too. So, what does this mean for us mere mortals trying to create something? We cannot just take someone else’s product and put our name on it. That would violate copyright laws. Instead, we need to ask ourselves whether we really own the idea behind the creation we are working on. And if we don't own the ideas, we probably should not try to profit off of those ideas.    

Can software licenses be resold?

Yes! You may legally purchase a license for a piece of software and then give it away to your friends or family members. However, you will still owe money for each person who purchases the software from you. For example, let’s say you purchased a license to software A and gave it to three (3) friends. Each friend bought a license from you and they now own a license to software A. When you eventually decide to move on with your life and start your own business again, you might choose to buy a copy of software B from someone else. Now you have two copies of software A and one copy of software B. This means that you now owe money for four licenses to software A instead of three. 

If you wish to continue to provide your services to your past customers while moving forward into the future, you need to follow these steps:

· Obtain a release form signed by every customer who received your service.

· Keep a record of which version of software you provided to each client.

· Send out releases for every program you have ever offered to your clients. 

You can also add a clause to your contracts stating that you will retain ownership over the software you distribute after providing your services. This allows you to offer your services to new customers without having to worry that you will run afoul of the federal copyright laws.     

Can a software license be sold?

Yes! A software license can be sold. As long as you comply with the terms of the software license agreement. Some companies allow you to ‘rent’ their products instead of buying outright. Renting software gives you access to a single user account and usually includes online technical support. There are several advantages to renting software versus purchasing software. First of all, most rental agreements require you to return the software once your usage period ends. Rental fees often include monthly hardware maintenance fees and/or software upgrades. Many users prefer to rent software because they already know how to operate the software and therefore won’t have to pay additional costs associated with training someone else on how to properly utilize the software. Finally, rental prices tend to be lower than the cost of owning the software. 

However, there are a few drawbacks to renting software compared to buying. One major drawback is that you typically lose control over the software after signing up for the rental plan. Your ability to install updates and patches is limited. You will likely receive fewer features included with the software than if you were to purchase the software outright. Another downside is that you will frequently encounter problems related to third party applications running within the application itself. This causes increased downtime and decreased productivity. Also, if you experience issues with the vendor’s tech support team, you will generally be left holding the bag.

Another option available to consumers is digital distribution. Digital distribution refers to downloading software directly onto your hard drive from the internet. With digital distribution, you can download multiple versions of the same software package and keep track of the latest version. Most digital distributors provide automatic updating capabilities. This makes installing new software easier and faster. 

Finally, you can always go back to school and learn how to write your own software. Then, you could become your own boss and build a successful career. Just remember...you'll need to figure out how to market yourself effectively in order to succeed.

Can software licenses be transferred?

No. Once you sign a software license agreement, you agree to abide by the rules set forth by the provider of the software. Since you agreed to the terms, you cannot change the terms later. Therefore, once you sign a software license agreement, you can never change it. You can modify the software, but you cannot alter the terms of the agreement.         

What happens if I want to transfer my nuance power pdf license to a new computer?

When you purchase a license to a given piece of software, you are actually acquiring the right to use the software. What that means is that you are able to install the software on as many computers as you like. After you acquire your initial license, you may upgrade your license to higher-value tiers for additional functionality.   For instance, if you initially purchase a license to NUANCE POWER PDF 9.0 and you desire to migrate to NUANCE POWER PDF 16.2, you would simply contact Nuance Power via email and request a migration key. Upon receiving the requested information, you can generate a unique activation link containing your upgraded license number and password allowing you to activate the required edition. You can then send the link to anyone you wish to grant permission to use the newly activated version of NUANCE POWER PDF. If you ever cancel your subscription, you will remain covered by your current license until such time as you renew it.

Why is software licensed not sold?

Software is licensed for the purpose of protecting the creator of the product. Licenses help ensure that the creator receives compensation for his or her labor. Because the consumer owns the software, he or she assumes responsibility for ensuring proper operation of the software. If the consumer fails to maintain the software correctly, the developer loses nothing. He merely has to spend extra time troubleshooting the issue and perhaps hire a programmer to fix it. On the other hand, if the consumer misuses the software and breaks it, the developer suffers financially.      

Most businesses do not consider themselves creators of the software they produce. Rather, they see themselves as providers of goods or services. Providing goods and services requires little effort and creates minimal financial risk. Businesses rarely worry about losing thousands of dollars due to faulty software. Instead, they focus on profits and losses. Thus, they view software as a commodity and look at it as a product similar to toilet paper or dishwashing soap. Consequently, they believe that software needs to be priced competitively to attract buyers. 

Licensing helps mitigate the risks inherent in producing software. By requiring payment upfront, developers avoid being burdened by unanticipated expenses. Furthermore, licensing ensures that they will receive compensation regardless of whether the end user buys their product or not. Lastly, licensing provides developers with peace of mind knowing that if they fail to deliver quality product, they will recoup their investment.

So next time you're looking to license software, think twice. Consider the following points when deciding whether to purchase a license or not:

· Can you afford to lose the entire amount of revenue generated by the software?

· How much time and energy will be needed to implement the desired solution?

· Will the system meet your organization's specific requirements?

· Does the license include training and implementation assistance?