Burning Question: Types of Software Licenses Explained

When you’re shopping for software, you’ll encounter many licensing terms, such as Perpetual License, Annual Subscription, Floating License, and Render-Only License. Sometimes, different types of licenses can be combined, too. For example, you might have a floating volume subscription that is cross-platform.

But what do these terms actually mean? I’m going to break them down for you here.

Annual Subscription License

With an annual subscription, users can access the software for one year. If a major update is released during that time, you can download and use it as long as your subscription is active. However, once your subscription expires, you lose access to the software unless you renew your license.

The software itself is the same whether you have a perpetual or subscription license—the difference lies in how it’s licensed.

Related Terms

• Cloud-Based Licenses – These are typically subscription-based and used for cloud-hosted software, such as Maxon and Adobe licenses.

Perpetual License (Permanent License)

A perpetual license allows you to own the software indefinitely. You can continue using it as long as your system supports it. Typically, minor updates (e.g., bug fixes) are included, but major version upgrades require an additional purchase.

A perpetual license is usually tied to a single computer, though some developers allow activation on two machines.

Related terms

• New License – Some promotions apply only to new licenses, meaning they don’t apply to upgrades.
• Permanent License – Sometimes used interchangeably with perpetual license, but be careful not to confuse it with a lifetime license.
• Upgrade & Support Plan – While not a license itself, this add-on keeps your perpetual license up to date with new versions and includes product support. If the plan expires, you’ll need to purchase an upgrade.

Lifetime License

A lifetime license is a rare one-time purchase that includes free upgrades for as long as the product exists under the same company.

For example, ZBrush previously offered both lifetime and perpetual licenses, but it has since moved to a subscription model with Maxon.

💡 The only lifetime license we currently sell is for Blackmagic Design DaVinci Resolve Studio.

Standard or Node-Locked License

A standard or node-locked license allows the software to be installed and used on a single computer.

Floating Licenses

Also known as network licenses, floating licenses allow multiple users to share access to software. The software can be installed on multiple machines, but only a limited number of users can run it at the same time.

This type of license is ideal for teams or individuals who work on multiple computers.

Related Terms

• Volume Subscription Licensing / Organizational Floating Licenses – Used by organizations needing multiple licenses. For example, Maxon offers this for businesses, and Reprise License Manager (RLM) is a common licensing system. For more information, see the Maxon RLM License Overview.
• License Server. A system where an admin manages software access for multiple users over a network. The admin can activate and deactivate licenses as needed.

Render-Only License

A render-only license is used for render farms or network rendering. This allows projects to be created on a main computer and rendered across multiple machines without requiring a full software license on each one.

However, render-only licenses do not allow direct editing or adjustments on the render nodes.

• Learn more about Using your plugins and software on a Network Rendering Setup.

Cross-Platform Licenses

A cross-platform license works on both Mac and Windows, even though the software download might differ for each platform. If you don’t need to specify an OS when purchasing, it’s likely a cross-platform license.

Academic Licenses

Academic licenses are available to students and faculty. They typically offer the same features as the full version, but they often cannot be upgraded.

Related Terms

• Site Licensing / Academic Campus License – Covers multiple computers in a classroom or university setting.

iLok Licenses

iLok is a license management system primarily used for audio plugins. It allows users to transfer licenses between computers while protecting software from piracy.

It supports:

• USB dongles
• iLok Cloud, which is becoming more popular as newer computers phase out USB ports

Note: Many software products no longer require the hardware dongle, so check before purchasing one.

Dongle Licenses

Yes, the term dongle might make you chuckle, but these hardware-based keys serve an important function: they unlock your software!

Dongles are usually USB devices, but as software becomes cloud-based and computers phase out USB ports, dongles are becoming less common.

These days, you’ll rarely find dongle-based licensing for modern software.

Final Thoughts

Choosing the right software license depends on your needs—whether you want permanent access (perpetual), flexible team use (floating), cloud convenience (subscription), or unlimited upgrades (lifetime). Hopefully, this breakdown helps you understand the differences so you can make an informed decision.