IBM Licensing Terms and Conditions
- IPLA: Outlines the rights and responsibilities of using IBM software.
- LIDs: Detail-specific licensing metrics, usage restrictions, and warranties.
- Passport Advantage: Simplifies procurement and offers volume discounts.
- Sub-Capacity Licensing: Allows licensing based on actual usage.
- Compliance: Regular audits ensure adherence to licensing terms.
- Termination: Licenses can be terminated for non-compliance
Overview of IBM Licensing Terms and Conditions
IBM offers a vast range of software products and services governed by specific licensing terms and conditions.
These terms define IBM’s and its customers’ rights and responsibilities regarding using, distributing, and supporting IBM software. Understanding these terms is crucial for organizations to ensure compliance and maximize their IBM software investments.
This article will cover the key components of IBM’s licensing framework, focusing on the International Program License Agreement (IPLA), License Information Documents (LID), and the Passport Advantage Agreement.
International Program License Agreement (IPLA)
The International Program License Agreement (IPLA) is IBM’s standard agreement that outlines the fundamental terms and conditions for using IBM software.
It is the foundational legal document governing the relationship between IBM and its customers regarding software usage.
License Grant
The IPLA grants customers a non-exclusive, non-transferable license to use IBM software, subject to the agreement’s terms. The license allows customers to:
- Install and Use: Depending on the license type purchased, customers can install and use the software on a specified number of machines or by a designated number of users.
- Backup Copies: Customers can make and install copies of the software for backup purposes.
- Modifications: Some IBM software products allow modifications, but these are typically governed by the specific terms outlined in that product’s License Information Document (LID).
Ownership
Under the IPLA, IBM retains full ownership of the software and all associated intellectual property rights. Customers are granted the right to use the software under the specified terms but do not gain ownership. This distinction ensures that IBM maintains control over its intellectual property while providing customers the necessary rights to utilize the software for their business needs.
Warranties
IBM provides limited warranties for its software, which generally cover defects in materials and workmanship. The specifics of these warranties vary by product and are detailed in the corresponding License Information Document (LID). Customers should review these warranties to understand the scope of IBM’s obligations and any applicable limitations.
Limitations of Liability
The IPLA includes clauses that limit IBM’s liability for damages arising from using its software. Typically, IBM is not liable for indirect, incidental, or consequential damages, such as loss of profits or data. This limitation is a common feature in software licenses designed to protect IBM from extensive liability claims.
Termination
The IPLA specifies conditions under which the license may be terminated. Common grounds for termination include breaches of the agreement’s terms or failure to pay the required license fees. Upon termination, the customer must cease using the software and destroy all copies.
License Information Documents (LID)
License Information Documents (LIDs) provide specific details about the licensing terms for individual IBM software products.
These documents are essential for customers to understand the unique terms associated with each product they use.
Licensing Metrics
LIDs specify the licensing metrics applicable to the software, such as:
- Authorized User: Licenses based on the number of specific users accessing the software.
- Processor Value Unit (PVU): Licenses based on the processing power of the servers on which the software is installed.
Usage Restrictions
LIDs outline any restrictions on how the software can be used. These restrictions might include limitations on geographical use, certain types of processing, or limits on the number of copies that can be made.
Warranty Terms
Each LID includes detailed warranty information specific to the software product. These terms clarify what is covered under IBM’s warranty and the duration of the warranty period.
Third-Party Software Components
Many IBM software products incorporate third-party software components. The LID will detail any applicable third-party licenses, including the terms governing those components.
Passport Advantage Agreement
The Passport Advantage Agreement is IBM’s comprehensive program for acquiring software licenses, subscriptions, and support. It is designed to simplify the procurement process and provide additional benefits to customers.
Easier Procurement
The Passport Advantage program simplifies ordering and managing IBM software licenses. Customers can acquire licenses, subscriptions, and support through a single, streamlined process, reducing administrative overhead.
Volume Discounts
Passport Advantage offers volume discounts based on the total software spend. These discounts are calculated using a points-based system, where customers accumulate points from their purchases. Larger purchases lead to higher discount tiers, making this program particularly beneficial for large enterprises.
Flexibility in Product Selection
The program allows customers to mix and match products and services to best meet their needs. This flexibility ensures that organizations tailor their software portfolio to align with their business objectives.
Access to Updates and New Versions
Customers enrolled in Passport Advantage have access to the latest software versions and updates, ensuring they can take advantage of new features and improvements as they become available.
Passport Advantage Express
IBM offers Passport Advantage Express for smaller organizations with simpler licensing needs. This program version operates on a transactional basis without the complexity of volume discounting. It is designed for small to mid-sized businesses requiring a straightforward software licensing approach.
Sub-Capacity Licensing
Sub-capacity licensing is a feature of IBM’s licensing model, allowing customers to license software based on the actual capacity rather than the server’s full capacity.
This model can result in significant cost savings, particularly in virtualized environments with dynamically allocated resources.
Requirements for Sub-Capacity Licensing
To qualify for sub-capacity licensing, customers must meet certain conditions:
- Approved Virtualization Technology: The software must be deployed using an IBM-approved technology.
- IBM License Metric Tool (ILMT): Customers are required to use ILMT to track software usage accurately.
- Accurate Record-Keeping: To ensure compliance, customers must maintain precise software deployment and usage records.
Failure to meet these requirements can result in non-compliance, additional license fees, and penalties.
Compliance and Audits
IBM reserves the right to audit customers’ use of its software to ensure compliance with licensing terms. These audits are designed to verify that customers use the software according to the agreed terms and that all usage is properly licensed.
Importance of Compliance
Compliance with IBM’s licensing terms is crucial to avoid penalties and additional costs. Non-compliance can lead to significant financial liabilities and disrupt business operations.
Best Practices for Compliance
To maintain compliance, organizations should:
- Regularly Review Deployment: Monitor software deployment and usage to ensure it aligns with the licensing terms.
- Proper Licensing: Ensure that all users and instances of the software are correctly licensed.
- Accurate Record-Keeping: Keep detailed records of software licenses and usage to facilitate potential audits.
- Internal Audits: Conduct regular internal audits to identify and address potential non-compliance issues before escalating.
IBM Licensing Terms and Conditions FAQ
What is the International Program License Agreement (IPLA)?
The IPLA is the standard agreement that governs the use of IBM software. It covers aspects such as license grants, ownership, warranties, and the conditions under which the license can be terminated.
What are License Information Documents (LIDs)?
LIDs provide specific details about the licensing terms for individual IBM software products. They include information on licensing metrics, usage restrictions, warranties, and third-party software components.
How does IBM’s Passport Advantage program work?
Passport Advantage is a comprehensive program that simplifies the acquisition of IBM software licenses, subscriptions, and support. It offers volume discounts, flexible product selection, and access to the latest software updates.
What is Passport Advantage Express?
Passport Advantage Express is designed for smaller organizations with simpler licensing needs. It operates on a transactional basis without volume discounts, making it easier for small businesses to acquire IBM software.
What is sub-capacity licensing?
Sub-capacity licensing allows customers to license IBM software based on the actual capacity used rather than the server’s full capacity. This can result in cost savings, especially in virtualized environments.
What are the requirements for sub-capacity licensing?
To qualify for sub-capacity licensing, you must use IBM-approved virtualization technology, deploy the IBM License Metric Tool (ILMT), and maintain accurate software usage records.
What does the IPLA say about software ownership?
Under the IPLA, IBM retains ownership of the software and its intellectual property. Customers are granted a license to use the software but do not own it.
How does IBM handle software warranty issues?
IBM provides limited warranties, typically covering defects in materials and workmanship. The specific terms vary by product and are detailed in the corresponding LID.
What are the limitations of liability in IBM’s licensing terms?
The IPLA limits IBM’s liability for damages arising from using its software. IBM generally is not liable for indirect, incidental, or consequential damages, such as loss of profits or data.
Can IBM software licenses be terminated?
Yes, licenses can be terminated under certain conditions, such as a breach of the agreement terms or failure to pay license fees. Upon termination, the customer must stop using the software and destroy all copies.
What are the usage restrictions outlined in LIDs?
LIDs specify any restrictions on how IBM software can be used, such as geographical limitations, restrictions on processing types, or limits on the number of installations.
How does IBM conduct compliance audits?
IBM reserves the right to audit customers to ensure compliance with licensing terms. During an audit, customers must provide accurate software deployment and usage records.
What should customers do to ensure compliance with IBM’s licensing terms?
Customers should regularly review their software deployment, ensure all users are properly licensed, maintain accurate records, and conduct internal audits to identify and address potential non-compliance issues.
What is the role of third-party software components in IBM licenses?
Some IBM products include third-party software components. The terms governing these components are detailed in the LID, and customers must comply with the associated licenses.
How can customers benefit from the Passport Advantage program?
By enrolling in Passport Advantage, customers can simplify license management, benefit from volume discounts, access the latest software versions, and mix and match products to suit their needs.
