What is a Software License Key and Why Do You Need One?

Without software, we cannot embrace modern life as it is, since even our personal gadgets such as Smartphones to corporate Bloomberg networks over rely on software. However, as everyone knows, not every software wants to legally purchase, and often, downloading an app is only half the battle – verifying its authenticity and checking its compliance with licensing laws is another story. In this case, the software license key is part of the progressive change during the deployment process. In this blog, we shall discuss what software license keys are, why they are required and why they are relevant in the current society.

1. What is a Software License Key?

A license key is a secret numerical or alphabetical code from which software’s legal status is determined during the installation or activation of the license. It can be seen as a type of accreditation that you have bought or have permission to use a specific item of software. These keys are bought along the software and act as a means of securing the software as only persons with keys can install the software.

License keys are applicable in many diverse computers types including the Windows operating systems, Microsoft Office, operating systems, and even numerous other products such as antivirus among others. For every key, there is a related version of the software, and many are limited by the number of installations that can be made or the number of devices on which the program can be run.

Common Names for Software License Keys:

• Product Key: Usually found in OS, such as windows or suites like the MS Office.
• Activation Code: It was again used for triggering the security software or any SaaS platform.
• Serial Number: A term more associated to the past can be found with more older software or some of the hardware tools.

The concept of a software license key has evolved over time as a solution to a growing issue: software piracy. Since it is almost impractical for software developers to regulate the usage of their commodities and products without the license keys, most of their commodities and products would be rendered to unauthorized users leading to loss of revenue.

2. The Purpose of a Software License Key

A software license key main purpose is to implement controls to forestall the use or distribution of software by anyone who does not have a legal right to do so. Here are some key roles that these keys play:

2.1 Software Authentication and Activation

A software license key assists in proving that a holder of a specific copy of software has legally obtained it. Usually when a user runs the installation process they are required to input the license key number. This key is the sent to another server that is located at a remote location in order to be verified. If the key is legitimate, then only the software is granted full functionality. If it is not valid, the user may over time be left to using a trial version or be allowed a limited number of features.

2.2 Limiting Unauthorized Installations

Second and also significant purpose of the license keys is usage of the certain program or software on some devices for limited number of times. This is particularly important for large software such as enterprise level software or other special purpose application software. Some keys are locked to the particular machine, and many of them are locked to one or several machines to avoid overload or sharing.

2.3 Enforcing Compliance

Businesses especially must be keen to operate under the correct license given to the software. Software legal compliance means that using the software must be done in accordance with the EULA, limiting the number of people that can use the software or the number of devices on which the software can be installed. License keys are useful to keep a company away from exceeding such limits.

3. Different Kinds of Software Licensing Key

However, not all software license keys are similar to each other in functionality and that is why they provide different facilities for their users. Deciding on the kind of key to be used can be determined with the kind of licensing the software developer wanted for it. Let’s take a look at some of the common types:

Single-use keys are keys that can only be used only once, as this is, in fact, part of their name. These are normally in application software that are installed on a user’s computer and only allows one single user from that computer to access the software. These keys can only be activated but cannot be reused once they have been activated.

Volume license keys are normally provided to companies and organizations for the installation of similar software products on various gadgets. Basically, instead of coming up with say device keys, a common key is used for the various devices when implementing in large numbers. This kind of key is suitable for bigger business applications and products including Windows or Office.

3.3 OEM Keys

OEM (Original Equipment Manufacturer) keys come packed with the computes, for instance, laptops, or desktops. These keys are linked to the hardware and cannot be transferred from one user to the other. For example, when you buy a new Windows laptop, the operating system could be pre-activated with OEM key and cannot be used in other station.

3.4 Subscription-Based Keys

Since some of the resources are subscription based, for example adobe creative cloud or Microsoft Office 365, license keys will be attached to an account instead of a device. This means that users can make use of the software from one or the other device provided the account is logged in.

3.5 Floating License Keys

In floating license, the software is subscribed for many users but only a few numbers of persons are allowed to use it at a time by using the license number. For instance, a firm may license software for 10 users and any 10 employees could use it at a given time but not over that number.

4. How Software License Keys Work

To use a software license key is fairly easy, but that is done through numerous well-covered layers, which make the system very secure. Here’s a breakdown of how software license keys work in practice:

4.1 Key Generation

When software is sold, the developer uses commercial cryptographic techniques to create a license key. These keys can be generated in sets and with each key being associated to a particular version of the product or a particular set of features.

4.2 Key Validation

And during the installation process the user types the license key for the particular software. The software then passes this key to the central server owned by the software vendor. The server compares the key from a particular user against lists of legitimate keys kept by the server. If the key is genuine and the usage count of the key is not exceeded then server delivers an acknowledgement, and the software is enabled.

4.3 Key Enforcement

Some of the software products put extra security measures like digital rights management systems. Such steps are useful in that even if somebody attempts to use the activation code, the individual will not be able to execute the software without typing the right license number.

5. Why Software License Keys Are Essential

Let me emphasize that the key of an intellectual property as a type of license cannot be ignored either. They are the first line of the shield against software piracy which is a big problem for developers and publishers.

5.1 Protecting Developers’ Intellectual Property

Software is a form of property that covers ideas, and software developers devote considerable time and money into the growth of the software. Lack of license keys makes their work vulnerable to issue in copied and distributed versions without remuneration. License keys safeguard this investment by making it possible to track all the users who need licenses to use applications.

5.2 Legal Approaches for the Users

In the view of the users especially the businessmen valid software license keys is of great importance since it avoids breach of law. It is not strange to hear of software audit and companies who are using unlicensed/Copy sofware are subjected to large penalties.

5.3 Providing Access to Support and Updates

There are still more advantages in using licensed software such as the customer support and regularly update of software. Many software distributors release periodic updates that enhance their product stability and laden with the latest security enhancements, bug fixes or new functionality. Nonetheless, such updates usually come out with new features only those who have legitimate license keys can update.

For instance, if you work with such tools as Power BI, having a legal key means you will be eligible to updates; this is important in the context of ensuring the means of data analysis used is accurate, safe, and functional. In a nutshell, Power BI is a tool that turns raw data into insights that can be used in decision making throughout a business. New features are rolled out frequently which makes it even more appealing to licensed users as a new feature could be a new visualization, new data integration or better reporting tool.

For those in need of a license to leverage Power BI to drive your business, you can get one from our site. Offering the Power BI Pro version at a reasonable price is our main strategy. You can obtain your license right here and actually fully unleash the power of your business data.

In the same manner, creative workers would get professional interface for photo editing, graphics designing, and painting with the help of Corel software. Updating this software with a legal key implies that you are using the newest version available, which contains new options to help you get your work done as well as enhancements and fixes for previously existing problems. In case of complex illustrations or enormous photo galleries, Corel’s tools are very effective to operate.

Corel has diverse licenses for meetings different arts and creative needs depending on the business of an organization. If you need trustworthy and cheap design software, here are our offers on the topic. It serves full functions as well as security without a doubt because you legally have an updated and licensed software.

6. Protecting Intellectual Property Rights

The loss due to IP theft is a major concern for software developers, while worldwide software piracy is said to be in billions at the moment. Software license keys play a crucial role in defending against this by:

• Assuming only the customers who have paid for subscription get to use the software.
• Restriction of the installation or the number of users.
• To assist developers to monitor the use rates and ascertain anomalous use.
• Software manufacturers and developers depend on the sanctity of this particular type of property. Without measures such as the keys, the industry is exposed and is always at the brunt of various high tech exploits.

7. The Risks of Using Unlicensed Software

Using unlicensed software may seem like an easy way to save money, but it comes with significant risks, including:

7.1 Legal Penalties

It is a criminal act to make or sell copy of software in the majority of nations. Unauthorized software use results in fines, penalties, and prosecution in the extreme case. Employers whose organizations’ computer systems have pirated software can be prosecuted by law from the software creators and bodies like BSA.

7.2 Security Risks

Those who use unlicensed software bear the consequences themselves because such products have no access to crucial security patches. Furthermore, pirated copy is often embedded with malicious code that may create big problem to one’s data or the company’s network.

7.3 Loss of Functionality

A lot of the software applications are developed to work with limited features or to give out constant alerts any time they find an unlawful copy. It can cause interference in working and restricts the use of the necessary functions.

8. Where to get Software License Key

There are several ways to obtain a software license key legally:

• Purchase Directly from the Developer or Vendor: This one is the most common and official method to get the license key all over.
• OEM Licensing: If the computer was brand new and obtained as a laptop or a desktop computer, for instance, the OS or other software can be purchased with an OEM key built-in.
• Volume Licensing Agreements: Volume licensing agreement means that for businesses, the vendor of the software negotiation offers a discount for multiple installation of the software.
• Resellers: Another advantage that authorized resellers can offer include reliable license keys for different classes of software.

9. Managing Software License Keys

Probably the most confusing issue for business entities to deal with is the possibility to have more than one software license key. Due to the many compliance problems that organizations face and to make certain that all the software’s are legal they use license management systems. These systems assist to identify which of the softwares is in which of the equipment and or ensure that the usage does not exceed license bounds.

Here are a few tips for managing software licenses effectively:

Centralize License Storage: It is advisable to keep all your license keys seared and well organized within a central data repository which only approved users have access to.

Use License Management Software: There are applications which can be used to monitor licenses; these include Flexera, SolarWinds License Manager, ManageEngine License Manager.

Regularly Audit Licenses: Sometimes it is easy to overlook the fact that some of the software being used in businesses is pirated, and this may sometimes be true for your business, so a periodic audit can be useful to determine whether or not all the software is licensed.

10. Conclusion

A software license key is not simply a bunch of characters, it is the keys to the kingdom when it comes to legal use of software. Controlling threats and using protected license keys to prevent or discourage software piracy is an important contribution to the modern information economy. For anybody who wants to get personal activated software, or the company which maintain several licenses, here is vital to comprehend the role of software license keys to obey the legal rules and be safe in the software world.

In addition, you avoid using fake software and being involved in unauthorized software usage, which is so common in different organizations, and in result, get access to the latest updates and software support.