A software licence grants the right to use software without transferring ownership. Key issues are scope of use, support and maintenance obligations, and what happens to data and customisations.

• Licence not sale — licensor retains all IP
• Computer Misuse Act applies to unauthorised access
• Decompilation permitted only in limited circumstances (CDPA 1988)
• Source code escrow protects customer if licensor becomes insolvent
• GDPR DPA needed if software processes personal data

Legal reference: Computer Programs Directive (Software Directive); Copyright Designs and Patents Act 1988 s.50; Computer Misuse Act 1990