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ARTICLE · 23 NOVEMBER 2014

Right To Use SaaS

Software delivered by a vendor as a service can help reduce costs related to software acquisition.

United StatesIntellectual Property

Software delivered by a vendor as a service can help reduce costs related to software acquisition.  Although businesses may find it easier to find the budget to acquire software as a service (SaaS) instead of purchasing software outright, it may be less clear as to what kind of license is appropriate.

Generally, software is delivered with certain limited rights to copy and install software onto a computer.  When purchasing SaaS, there is typically no need to install a copy of the software. Because there is no need to copy software, a traditional software license with the right to copy and install the software is probably not appropriate.  Instead, when licensing SaaS, publishers commonly select a right to use ("RTU") license.

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