Ricardo develops a new type of software and asks you how he should go about making money through distribution of it.He has been told that he should sell the software as opposed to issuing licenses for its use.What should you tell him?
A) That by selling, rather than by licensing, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy.
B) That by licensing, rather than by selling, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy.
C) That selling is the only reasonable alternative because computer programs are not copyrightable.
D) That licensing is the only reasonable alternative because computer programs are not copyrightable.

Question

Quizplus · Accepted Answer

By licensing a software, the vendor can retain ownership and control over the software, while allowing customers to use it under certain terms and conditions specified in the license agreement. This can help the vendor to restrict unauthorized copying or distribution of the software, and to ensure a steady stream of revenue through ongoing license fees or upgrades. Selling the software may give up some control over how the software is used and distributed and may also limit the ability to generate ongoing revenue. Additionally, computer programs are copyrightable under the law.

Ricardo Develops a New Type of Software and Asks You