Do you want to find out more about software licensing models? Do you have questions about how different licenses work? The information on this page should give you the information you need. If you have additional questions, do not hesitate to contact us.
Software licenses from Quadros Systems generally include the following components:
Software Development License
License to develop application code using RTXC Software in order to create a derivative work for execution on an embedded target processor.
Source Code License
Every project and every site must obtain a Source Code License (SCL) for each licensed product from Quadros Systems. The license grants a limited right to developers with a valid SDK to use the Quadros source code to develop derivative products. The licensee also has specific responsibilities to maintain the security of the source code.
The above licenses give the right to develop a product using the licensed software but DO NOT allow you to incorporate, deploy and distribute the derivative work in a product without first obtaining a Deployment License. A Deployment Licenses is negotiated between you and Quadros Systems based on the expected unit volume of the derivative product(s).
Quadros Systems offers a variety of licensing models that are designed to meet the varying needs of our customers.
Single Product License
This is our most popular license model. This license allows you to develop a single product on a single target processor using our software. Our definition of “product” generally corresponds to your Model Number. The Single Product License includes a Software Development License for up to five developers, a Source Code license and a Deployment License for up to 100,000 derivative units.
Product Family License
Similar to the Single Product License, this allows you to develop up to five products in a product family using a single target processor. The Product Family License includes a Software Development License for up to five developers, a Source Code license and a Deployment License for up to 100,000 derivative units for each of your Model Numbers.
This license allows you to develop an unlimited number of products on a single processor. These products do not have to be part of the same family. This Processor License includes a Software Development License for up to five developers, a Source Code license and a Deployment License for up to 100,000 derivative units for each of your Model Numbers. Generally, customers who have a processor license also arrange for a multi-year support contract. For an additional fee, processor licenses can be extended to include multiple processors.
In this model the customer pays an annual fee for access to Quadros Systems software and support services. Subscription fees include software updates for the length of the subscription period. The software components are customized to meet the specific needs of the customer. A Deployment License may also be included in the subscription fee or fees may be paid on unit shipments.
This license model provides Software Development and Source Code licenses with no permission to ship derivative products. A separate fee is negotiated for the Deployment License (see below).
Quadros Systems negotiates unit-based license fees for customers who:
- Want to share the “success risk” of their product with us by not pre-paying for deployment. We are only paid on the products that are shipped. This is also ideal for larger companies with Stage-Gate processes where some products do not make it to the production “gate.”
- Want to “back-end-load” their costs. Customers with smaller budgets can pay for development in one budget year and use product revenue to pay the rest of the cost.
- Have unit volumes in excess of 100,000. These customers generally purchase blocks of deployable units and then reorder additional blocks using their MRP system.
Some customers need some combination of the above licenses to best meet their needs. Count on us to be flexible in working out an appropriate model.
What costs are covered by a license fee?
A license fee is fair payment for the use of the software. It pays for the original development cost of the software, the sustaining engineering of the software and the value of the software to your end product.
Why isn’t all software royalty-free?
In the beginning all software licenses were royalty-based. Software manufacturers considered their software component to be as valuable as a hardware component. If customers need to pay “per piece” for the hardware, software should have the same model.
Over time, different models were introduced. Some were in response to customer push-back over cost. Some customers felt that there was no manufacturing cost for software. The royalty-free model designed to offer competitive advantage in the marketplace.
How does a Royalty-Free License work?
In a royalty-free license you are still paying unit royalties. An assumed number of deployed units is covered by the price. If you have a low volume product, you are paying more per unit than another development team with a high volume product.
When should I consider a Royalty License?
Licenses that include a software royalty may be a better choice than a royalty-free license.
- You want to share the “success risk” of your product with the software supplier by not paying in advance for the deployment portion of the license; you only pay for the products you actually ship. This is also ideal for companies with Stage-Gate processes where some products do not make it to the production “gate.”
- You want to shift some of your costs from development to manufacturing. Customers with smaller budgets can pay for development in one budget year and use product revenue to pay the rest of the cost.