Saturday, May 27, 2006

With a license, you don't own the product

Watch out if companies stop selling you products and start "selling" you licenses. Because a license is nothing more than a lease on a product. You don't own it. You can hardly sell it. The company can ask for more money. And best of all, the company can take the product away from you again.

And there are only a few reasons for leasing a product:
- You only need it for a short time and save a lot of money compared to buying the product
- You have some sort of service contract and get a new and improved product every once in a while, but do this only when you know that the "old" product won't do in one or two years time. An example would be a machine or a car you use a lot.
- Your product requires a regular service not covered by the product price
- You have tax reasons
- You want to spread out the product price over a amount of time

Maybe I missed a point or two, don't hesitate to add you input!

So in some circumstances, it makes sense for you to lease instead of buy, but the decision should be up to the user. If a company starts to enforce one option and stop another option, be very wary.

So does it make sense to lease games, software or music? I guess only for the company receiving the money from you.

Sony rumored to be limiting PS3 game resales | | CNET

And in related news:

Final Fantasy Turns Into Final Nightmare For Xbox 360 - Thomas Hawk

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