And the way these two models work is very different

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And the way these two models work is very different, so we're going to talk about both of them here. Proprietary Licensing 0:37-1:02 Let's begin by discussing the proprietary licensing model that's used by many software vendors. Now, before we go any farther, it's important that you understand that we will be discussing proprietary licensing in the most general of terms. Each vendor you purchase a proprietary license from should provide you with an end-user license agreement, which we affectionately call the EULA.The EULA dictates the specific terms for that particular software title. Proprietary Software Development 1:03-1:43 Now, most proprietary software products, whether they're applications or whether they're an operation system, either way, they're usually developed by a for-profit organization. The software is developed as a part of a well-organized design and development effort on the part of a single software development company. Here's what usually happens in most organizations. First of all, they identify a customer need. Then, a design team's put together and they hash out a product requirements document, or a PRD, which specifies exactly what the product will do. The tasks identified in the PRD are then assigned to teams of programmers, who write their assigned code elements. And when that's done, the code is checked in and the product is run through a series of testing cycles. Proprietary Software Considerations 1:44-3:13 And then, when the product has had all of its bugs worked out, we hope, the finished product is shipped to the customer. And the customer uses that product for a period of time and then usually identifies bugs that were missed during the initial testing process. And they may also identify new features or functionality that they would like to see added to the product. The software company receives that feedback from the customers and then the cycle starts all over again. Now, there are several key facts that you need to remember about software that uses proprietary licensing. First of all, when you purchase the software, you're not actually purchasing the software. Instead, what you are purchasing is a license to use the software. The software company itself retains ownership of the actual software. And because you're only purchasing a license and not the software itself, you're not allowed to access the software's source code and make any modifications. The software vendors usually do not make the source code available to customers to do this. In fact, you're usually not allowed by the EULA to reverse-engineer the software either. Reverse-engineering's the process of converting a binary software applicationback into its uncompiled source code. Now, the license you purchase usually only permits you to install the software on a fixed number of computers. Now, back in the old days, you were on your honor to abide by these limits. But today, these installation limits are commonly enforced by the software vendor using online software activation. And if you try to use the same activation code too many times, the software will not activate and you'll not be allowed to use it.
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  • Spring '14
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