For many reasons, companies should exercise caution in using public software in projects or other important applications: these licenses do not allow the software to copy, modify, or distribute. This is the most restrictive type of software license that protects the developer or owner from unauthorized use of the software. Familiarity with software license types is also important to reduce wasted IT expenses. Browsing through these software license agreements is a complex process that often requires cooperation between IT experts and legal advisors specializing in technology and contract law. Where a licensor is willing to compensate itself for claims of third parties for intellectual property infringement, a licensor generally offers closer compensation and agrees to take certain action when an injunction is sought or obtained against a licensee`s use of the software. This is where a software license agreement comes in. Here are the top five reasons why you should have a software license agreement: Open source licenses are those that allow you to use, distribute, and modify end-user software. A genuine open source application should fit the open source definition, a series of 10 general requirements for open source software….