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- [Teacher] Software is often very

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valuable intellectual property.

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Companies invest significant financial

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and human resources in
developing software,

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and then protect it through
the use of license agreements.

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Software License Agreements
describe the terms of use

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for software that an
organization acquires.

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These agreements contain
many different provisions

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that cover the circumstances
of acceptable use.

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These may include the number
and types of individuals

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who may use the software,

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the amount of information
that may be processed,

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the locations where data may be processed,

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and the numbers of servers
supporting the software,

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as well as whatever restrictions
the software publisher

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chooses to include in the agreement.

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Software license agreements
come in many different forms.

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In some cases, software
agreements are detailed contracts

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that are negotiated
between the software vendor

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and the customer.

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This is especially true in the case of

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expensive enterprise software.

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In these cases, the vendor often proposes

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a license agreement, and then
the custom suggests revisions.

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And there may be many round of negotiation

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before the two sides agree on
mutually acceptable language.

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Click-through agreements are on the

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other end of the spectrum.

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They're take it or leave it agreements

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where the customer simply
clicks an I agree button

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as they purchase software
or sign up for a service.

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These click-through
agreements can be dangerous

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because users typically
don't read them carefully,

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if at all, and they may be
committing their organization

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to undesirable restrictions.

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You should also be familiar with the term

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shrink-wrap agreements on the exam.

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Shrink-wrap agreements
are essentially the same

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as click-through
agreements, but are included

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on the physical package for software

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and take effect when the
user opens the shrink-wrap

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or breaks a seal on the software.

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Shrink-wrap agreements
are rarely used today,

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simply because most
software is distributed

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electronically and not in physical form.