License Management Planning and Design

Beyond the protection of intellectual property, licensing can be used to increase revenue opportunities. A license management solution should fit the needs of the publisher rather than forcing the publisher to alter the business needs to suit the solution. Following are some of the factors that need to be considered in planning and design of a license management scheme prior to integration.

License Models
Innovative licensing models can be leveraged to help generate new revenue opportunities. Applying multiple license types to the same software package, such as leasing or rental models, may open new markets. User registration can be enforced to allow a publisher to perform market trend analysis. Functionality within an application can be enabled and disabled using licenses to sell individual features or bundles of features.

Levels of Security
Security measures comprise a broad spectrum of options with unlocked licenses at one end and fully integrated hardware solutions at the other. A license management system should provide varying degrees of security to enable the software publisher to change according to the product and the market being served.

When competing in markets with higher piracy rates, a fully integrated hardware based solution, such as Sentinel Hardware Keys, provides greater security. In markets where piracy is not as significant a concern, product usability may take precedence over security. Lower level security can be implemented to support licensing transparency for the end user.

Sustainability
As sales and marketing needs change, electronic licensing should be advantageous, rather than a burden. A well planned license management scheme is one that is also designed for future maintenance. To control costs, it is important to design a license management system that is not reliant on expert knowledge limited to a few implementers.

A license management system should assist a publisher in taking advantage of new options for the sale and distribution of software. In addition to facilitating online license distribution, a well planned license management scheme can greatly benefit publishers that fulfill through a channel. Complete software and hardware modules can be distributed and the purchase of functionality enabled by electronic licenses, thereby reducing costs.

For further information on evaluating, selecting, and implementing a license management scheme, please read our White Paper.

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