Q.How can a licensor ensure his licensed software will be distributed in the proper channels?

A.Any agreement for the licensing and distribution of software should clearly state that the software is "licensed and not sold." The license should also clearly set forth the limitations of the license (geographic scope, territory, time, purpose, etc…). Such terms in a license agreement will enable the licensor to retain full copyright ownership in the product being licensed, and in turn enable the licensor to control its distribution in the marketplace.

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