Software licenses define how you can legally use a program and what rights you have as a user. Here are the main types you’ll encounter:
Freeware
Freeware is software you can download and use completely free of charge, with no payment required ever. However, “free” only refers to cost – the developer still owns the copyright and sets usage terms. Common restrictions include prohibiting commercial use, redistribution, or modification. Examples include many browser extensions, basic photo editors, and utility programs. While you don’t pay money, you might “pay” in other ways like viewing ads or having your usage data collected.
Perpetual License (License for Current Version)
Perpetual license means you pay once and own the right to use that specific version of the software forever. You can install and use it indefinitely, even if the company stops supporting it or goes out of business. However, you’re typically only entitled to that version – if you want major updates or new features, you’ll need to purchase a new license. This was the traditional software licensing model, seen with older versions of Microsoft Office, Adobe Creative Suite, and many desktop applications.
Subscription License (Yearly/Monthly)
Subscription licensing requires ongoing payments (monthly, yearly, or other intervals) to continue using the software. You essentially rent access rather than owning it. Stop paying, and you lose access to the software and often your ability to open files created with it. The advantage is you always get the latest updates, features, and support. This model has become dominant with services like Microsoft 365, Adobe Creative Cloud, and most cloud-based software.
Other Common Types
Open Source licenses allow you to use, modify, and often redistribute the software freely, with source code available for inspection and modification.
Freemium offers basic features free with paid upgrades for advanced functionality.
Enterprise/Volume licenses provide special terms for businesses buying multiple licenses, often with centralized management and support.
The trend has shifted heavily toward subscription models, as they provide predictable revenue for developers but require ongoing costs for users. Consider your budget, how long you’ll use the software, and whether you need the latest features when choosing between these options.
What Licenses do EscSoft use?
Freeware licenses for our software that supports older hardware devices where we have stopped development.
Perpetual licenses for utility software and tools. For small software, we see no point in a subscription service because users may only use the product a few times a month.
Subscription licensing for products which have depth or for developers who require constant support and updates. If the product provides value for money like Microsoft 365, then we believe a subscription model is warranted.
