Software licensing is full of jargon that means slightly different things to different vendors. Here's a plain-English mapping you can actually use.
The five common license types
Subscription
You rent the software. Stop paying, lose access. Common in SaaS and increasingly in desktop software. Pro: lower upfront cost, latest version always. Con: ongoing cost, lock-in.
Perpetual
You buy a specific version. You own that version forever. Updates may be paid. Pro: clear ownership, no surprises. Con: paying for major upgrades.
Lifetime
You buy access to all updates, ostensibly forever — meaning the company's lifetime, not yours. Read the fine print: how is "lifetime" defined?
OEM
Bundled with hardware. Tied to that hardware. Cheapest tier, but non-transferable. Microsoft and similar vendors define this strictly.
BYOL (Bring Your Own License)
You provide a license bought elsewhere; the platform hosts the software. Common in cloud marketplaces.
How activation works under the hood
Most modern software validates a license key against the vendor's server when you first activate. After that, periodic re-checks happen quietly. This is why even "offline" software occasionally needs an internet connection.
Activation limits and transfers
- Per-device activations are limited so a key can't be shared across hundreds of machines.
- Transferring a license to a new machine usually requires deactivating the old one. Some vendors require a support ticket.
- Resetting activations is a normal request when you change hardware. Reasonable vendors honor it; sketchy ones don't.
What to look for in a license
- How many activations are allowed?
- Are updates included? For how long?
- Can the license be transferred?
- What's the offline activation policy?
At LionScripts every product page shows the exact license terms — activations, update policy, transfer rules — without burying anything in fine print. See how to buy software online safely for related guidance.
