Legal Definitions - shareware

Shareware refers to a category of software that is distributed with the expectation that users will pay a license fee to the developer if they continue to use it beyond an initial trial period or to access its full features. While users are typically permitted to copy and share the software with others, they are generally not allowed to modify its underlying code. The obligation to pay a license fee applies to all individual users, whether they obtained an original copy directly from the developer or a redistributed copy from another user.

Here are some examples to illustrate shareware:

• Imagine a small software company creates a specialized photo editing tool that offers unique filters and effects. They allow anyone to download and install a trial version of the software, which is fully functional for 15 days. During this trial, users can freely share the installer file with friends or colleagues who might also be interested. However, after the 15-day period, the software will either cease to function or significantly limit its features, prompting the user to purchase a license key to continue using the full version. This is an example of shareware because the software can be redistributed, but each user must pay a fee to use it long-term and cannot alter the program itself.

• Consider a niche productivity application designed to help small businesses manage client contacts and appointments. The developer provides a downloadable version that allows users to manage up to 10 clients for free. Users can distribute this version to other businesses they know. However, to manage an unlimited number of clients and unlock advanced reporting features, each individual business or user must purchase a full license. This demonstrates shareware, as the software can be shared, but a payment is required for full, unrestricted use by every user who benefits from the expanded capabilities.

• A developer creates a new puzzle video game and releases a demo version online that includes the first ten levels. Players can download this demo and share it with friends who enjoy similar games. To access the remaining levels, unlock new game modes, and experience the complete storyline, each player must purchase a full license for the game. This fits the shareware model because the initial portion is freely distributable, but continued or complete access requires a payment from each individual user.