What happens when a software license expires?

What happens when a software license expires?

Every software comes with a license agreement you must accept before installing it. These licenses are only valid for a certain period. So, one of the main concerns for many software users is what happens when your software license expires.

Several things can happen when a software license expires, depending on the terms and conditions of the permit and the policies of the software developer or vendor. Often, you’ll lose access to the software and updates, experience limited functionality and receive frequent warnings about the expired license.

You can even be prosecuted for using software with an expired license. This is why a reliable software license asset management tool is necessary. It helps you manage your software licenses and informs you when a license needs renewal.

In this article, we’ll dive into the importance of a software license and the possible outcome of its expiry.

Why is a software license important?

A software license is a legally binding agreement that outlines the terms and conditions of acquiring and using the software. Using or distributing the software without a license is considered a violation of copyright law.

A software license is accompanied by a license agreement that stipulates the rights and limitations of the software developer and the user. So, a software license protects the interests of the developer, vendor and the user.

As your business grows, your software portfolio expands, making it difficult for you to manage the licenses. This is where a software license asset management system comes in handy. It’ll help you keep track of all your software licenses so that you can know when to renew them and identify redundant applications whose subscriptions need to be terminated to save money.

Using software whose license has expired amounts to a breach of the law and could lead to prosecution or hefty penalties. Luckily, some developers and vendors offer software perpetual licenses, allowing you to continue using their programs continuously without renewing the licenses.

Alternatively, you can create a software license management plan to help you manage your licenses and know when they’re about to expire for timely renewal. Many individuals and companies have elaborate asset management plans and tools that enable them to proactively monitor their software portfolios and lifecycles to know when to renew, cancel or pause their subscriptions.

What happens when your software license expires?

We’ve mentioned that what happens when a software license expires depends on the terms of the license and the policies of the developer or vendor. Here are the potential outcomes of an expired software license:

Denied access

The first sign of an expired software license is the lack of access to the entire software suite or some of its critical products and features. When this happens, you might be completely locked out of the program or allowed ‘read-only’ access.

Limited functionality

Sometimes, you may be able to use the program but with reduced functionality. For instance, you may be allowed to read and retrieve data but not to create, alter or save new files.

Lack of new updates

Your software needs to be updated regularly to keep it functioning optimally and less vulnerable to attacks. Without a valid license, these updates won’t be available, making the software risky for your business.

Warnings

When a software license expires, you’ll receive persistent warnings in the form of emails or pop-up messages asking you to renew the license.

Legal problems

If you continue using software with an expired license, the vendor might file a lawsuit against you for violating the license agreement.

Final thoughts

The consequences of having an expired software license vary based on the terms and conditions of the license, as well as the policies of the software developer or vendor.

The best way to avoid these scenarios is to invest in a reliable software license asset management system like Flexera that’ll help you know when your licenses are about to expire.