Software Licensing Basics: What Businesses Think They Own (But Don’t) - Ep 19

When you “buy” software, do you actually own it? In most cases, the answer is no. In this episode of Elise Explains IP, we break down software licensing basics in plain English — what a licence really is, why it matters for your business, and the risks that often get overlooked. Because software isn’t just a tool — it’s infrastructure. And if you don’t understand your rights, you may not be in control of your own systems. What You’ll Learn The difference between owning software vs licensing it Why most businesses are only granted limited rights to use software The key types of software licences: SaaS (subscription-based platforms) Perpetual licences Open source software Custom-built software The hidden risks in developer arrangements (and who actually owns the IP) What happens when a licence is terminated The terms that matter most in any software agreement Key Risks to Be Aware Of Losing access to critical systems if a licence ends Being unable to extract or migrate your data Discovering you don’t own custom-built software Breaching open source licence terms without realising Getting locked into platforms with no exit strategy Real-World Insight Many businesses invest heavily in custom-built platforms — CRMs, booking systems, or internal tools — only to discover later that they don’t own the underlying IP. If the relationship with the developer breaks down, the business can be left without control over systems they rely on every day. Key Licence Terms to Check If you review nothing else, focus on: Scope of use – who can use the software and how Termination rights – what happens if the agreement ends Data ownership and access – can you export your data easily Transferability – can the licence move with your business Customisation rights – can you modify or adapt the software  Practical Steps for Business Owners Audit the software your business depends on Identify any single points of failure Review key licence terms (especially termination and data access) Ensure custom software agreements address IP ownership clearly Plan an exit strategy for critical platforms Why This Matters Software sits at the centre of most modern businesses — from customer data to financial systems. If you don’t control your access to those systems, you may not fully control your business. Work With Elise If you’d like help reviewing your software arrangements or ensuring your business is properly protected: Book a strategy call: https://www.elisesteegstra.com Share This Episode If you found this helpful, share it with a business owner or advisor — especially anyone investing in software or building custom systems.