Software Licensing: Legal Pitfalls You Need to Avoid
In an increasingly digital world, software licensing is no longer just a technical detail — it has become a strategic and legal issue. Companies that neglect the terms of use, or fail to understand the legal implications of a licensing agreement, face risks that go far beyond fines: we are talking about reputation, security, and even the interruption of operations.
Here are some pitfalls you should avoid:
1. Confusing license with ownership
Many people believe that when acquiring software, they are actually “buying” the product. In reality, what is obtained is a license to use it, under specific rules. Ignoring this difference can lead to misuse, such as copying, reselling, or modifying the software without authorization — which constitutes copyright infringement.
2. Generic or poorly drafted contracts
Poorly written licenses, without clear clauses regarding scope, term, number of users, or territory, leave room for disputes. A licensing agreement needs to be precise and customized, especially when it comes to tailored solutions or SaaS models.
3. Misuse of open-source software
Open-source software is valuable, but it comes with specific licenses (GPL, MIT, Apache, etc.). Incorporating open-source code into commercial solutions without respecting these licenses can create unexpected legal obligations, such as the requirement to release the product’s source code.
4. Lack of compliance and internal audits
Companies that fail to monitor software usage internally may exceed license limits — for example, installing it on more machines than permitted. This can result in external audits, fines, and even lawsuits.
5. Security and liability issues
Some contracts do not clearly establish who is responsible for failures, bugs, or data breaches. In times of data protection regulations such as the LGPD, it is crucial to define responsibilities regarding information security and software updates.
Software licensing is not just a formality — it is a key component of risk management and the protection of intellectual property. A well-structured contract can prevent headaches, protect assets, and ensure that technology is an ally, not a vulnerability.
If you work in technology, legal, or management, it is worth reviewing your contracts and usage policies. And if you have any doubts, consult an intellectual property specialist. The cost of prevention is always lower than the cost of correction.
