Software Legalization in Ukraine
Date: December 15, 2003Source: Computer Crime Research Center
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... receives a termless license. Then he may or may not prolong action of the program on reception of new software versions (Software Assurance).
OSL?- software rent for the period of three years. Annual payments are paid for the right to use the software, size of payment depends on software type and number of PCs where it is installed. For the period of three years the user has full access to software updates. After the given term client can either break the agreement, or prolong it for the following term, or to buy out the software (thus payment is in 1,5 times higher than annual payment).
ÅÀ?- is similar to MYO and is distributed to companies with not less than 250 of PCs with Microsoft as the basic platform.
Licensing of all PCs of wide application (all personal computers, minus servers and computers used for solving only specialized tasks) is compulsory for the conclusion of the given agreement. Any software installed during action of ÅÀ, will be considered legal up to the next verification payment, when the enterprise should specify as far as the number of PCs was increased, and pay additional licenses.
As an example of license control system [4] we can consider the project at Poltava Ore Mining and Processing Enterprise. The number of computer facilities in the enterprise is about 500 PCs, it was increased within last eight years. Therefore more than half are out-of-date computers. Administration has been thinking about these old computers: whether to leave them or to discard and replace with new. And what software they should install to keep within the budget?
For the best option inventory was carried out with help of freeware Microsoft Software Inventory Analyzer. As a result of a week-long inventory they have got a full list of software installed in PCs of the enterprise. After comparing results with data in accounts department, a number of pirated installations was found out.
According to the received data there was carried out standardization of all workplaces. And since, the enterprise is buying software only under these standards. For example, accountants’ computers are equipped with Windows XP Home Edition (plus right to use previous versions of Windows) and MS Office Standard, engineers’ computers with Windows XP Pro and MS Office Professional.
At present Poltava Ore Mining and Processing Enterprise buys certain number of licenses monthly according to the authorized business-plan which has been originally designed for three years. After inventory the enterprise found out that the number of required licenses is less than it was planned, it is possible to finish all process within two years or even earlier.
The strategy of choosing the optimum scheme for licensing is defined on the basis of the following data analysis.
1 . The number of personal computers or PIB (PC Installed Base). If the company has less than 5 PCs, it is necessary to buy MS Office XP Standard Box for already existing personal computers and Windows XP OEM license. When the company purchases new personal computers, it is possible to take them with office package and OEM Windows at once. In this case saving is essential - almost 40%. If the company has more than 5 PCs then it is necessary to pay attention to corporate licensing with a number of different options, the choice of which is made on the basis of the following issues:
2. The customer would like to receive updates of used products, wouldn't he?
If yes, it is necessary to consider the schemes of licensing providing updates of versions (MYO, ÅÀ, etc.). Should we say that while purchasing a product without option to update it, customer will have to buy a new product for full price?
3. Will installments do for the customer?
On one hand, unambiguously yes, in view that there are no interest fees for actually supplied credit. From another - the state institutions frequently have no right to sign long-term contracts for a term of more than one year. This compels to offer such customers only schemes with one-time payment, i.e. open licenses (MOLP). In this case there is a problem of new versions updates.
4. How dynamic are the purchases of new and discarding of old PCs?
There are customers with annual gain of PCs making about 60% from existing, and discarding of old PCs - about 15%.
5. How to buy a new PC? Will it be with preinstalled (OEM) operating system and office package?
But there is one nuance. We can buy operating system "in addition" to already purchased computer, but we can't do this with MS Office. Using OEM license it is purchased only with PC which cost at once will increase by $350-500. It is possible to license MS Office by open license, however all this time employee will have to work with it illegally. Besides at the enterprises numbering thousand or tens thousand of PCs where, as a rule, there is no unified centralized system of purchases (divisions are autonomous), it is obviously impossible to reach exact accordance of PCs and licenses numbers.
In such cases it is expedient to use corporate schemes of licensing (MYO, EA, EAS) as maximum flexible and also solely comprehensible for customers, number of the personal computer of which exceeds 100 units. The given kinds of licensing have such advantages: opportunity of software updates; purchase of new equipment with the cheapest operating system and the latest versions of software products; planning of IT-budget for the nearest 3-4 years with high accuracy; verification of PCs number with number of licenses only once per year and admission of PCs and licenses discrepancy.
[1] Ukrainian Legislation on the Intellectual Property, Kharkiv: JSC "Odissey", 2002, p. 20.
[2] U. Kazakov, Intellectual property, Moscow: Masterstvo, 2002, p. 8.
[3] V. Matvienko, License Management, Computer Review, ¹ 42, p. 53.
[4] Licenses Management Methods by the Ukrainian Center of License Software. - http://uaportal.com.ua/news/Computers/news_10570.html.
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