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Software licensing is a contract of agreement between the software publisher and the end user, who sometimes referred to as the End User License Agreement or EULA. However, software licensing can also be a paper agreement and most often engrafted in the software itself as part of installation process. If the user does not agree to the software licensing terms, he or she can also indicate this with a click. This aborts the installation process. Many times end users click in agreement whether they actually read the license or not.

Software licensing secures the copyright by placing restrictions on the end user in relation to the product. Duplication for purposes other than backup, editing code, installation on more than one computer, or changing the program in any way is usually disallowed. The software licenses might also restrict reverse the engineering and bypassing controls intended to bring down on pirating.

Software licensing functions as a kind of disclaimer, aside from the limited uses of the software. Most of EULAs include statements to the effect that the publisher will not be held for any unexpected circumstances like a computer crash or loss of data, time or income, which might arise as a consequence of using the software.

Software licensing differs among types of software. Freeware licensing is less limiting than retail or shareware; it allows unlimited copying and distribution while still disallowing any changes to the program. Public domain software is the one type of software licensing without having any restrictions, as this software related to public. SEO Company Many publishers have held that once the ‘shrinkwrap’ is broken on a retail product, end user will accept the license.