Legal changes are making it increasingly very difficult to sell perpetual licenses. For example, in Germany, a new law recently took effect that clarifies that if you sell a software license for a given period of time, you're liable to provide whatever updates/support the customer may need over the course of the software's licensing period to enable the customer to keep running it, at no additional cost, regardless of what it costs you. I'm not a lawyer and may be getting this wrong, but if you're contemplating getting into the business of selling perpetual licenses in software, definitely check with a lawyer. It's not like it was in the 90s.
In the 90s, a large driver of recurring revenue for software was that when the OS and hardware landscape changed, you made a new version of the software adapted to that change, and then, if customers wanted to upgrade their OS or hardware (frequently for reasons unrelated to your product), that made them come back to you to pay for the new version of your product. Under the new legal regime, you would be forced to give them the update for free, so if you sell an actual perpetual software license, you have a fixed amount of revenue on one hand, and a potentially unlimited liability to incur additional costs on the other.
That is a good point that US-based developers may not be aware of. The EU CRA (Cyber Resilience Act) mandates "an obligation to provide duty of care for the entire lifecycle of such products", mostly by requiring updates for security vulnerabilities. Any software that connects to the network (or Internet) has to be assumed to have a vector for vulnerability at some point in the future. This means that it has to be updatable, and cannot be a perpetual license.
But it can be possible to have a license that allows you to run it at your own risk forever right? I mean, open source licenses do that, so you can make those and sell those as well. The 'support' being whatever updates happen to appear. Or the support is separately sold (again, like open source), so you pay once and for all year and you get updates forever, however, no support after 1 year; you can buy more. I have used support for downloadable paid products (turbo pascal, delphi, visual studio etc) in the past exactly 0 times, so not sure if support isn't just a check box for larger companies and they can buy it then yearly.
Yeah, (and I realize this is all based on a half-remebered law) but the OP said the law only obligated the company to support the SW fully "during the licensing period". In my experience, most perpetual licenses come with some initial "support agreement" (2yr, 4yr, etc.). After that, the user can still use the SW, and the company wouldn't be obligated to provide support. So, this law sounds like it's really preventing some a-hole from selling perpetual licenses without any agreed upon garunteed support period (basically taking the money, calling the consumer a 'sucker' and running for the hills)
From the a-hole part, I can infer you think forcing subscriptions for everything is somehow protecting the consumer? I want to give you software I am going to support for the coming 5 year or what not for a one off price and after that you can still run it forever but no more support. Is that not a far better deal? But maybe I miss understand you.
By the way; the perpetual 'for life' stuff gets sold on SaaS sales sites like appsumo all the time. It’s just a grift and should be forbidden: hopefully some law will be made for that as well.
> you're liable to provide whatever updates/support the customer may need over the course of the software's licensing period to enable the customer to keep running it
Does this include new layers for games, so that customers don't get bored? More seriously, this law is probably targeting big US companies. But smaller companies are suffering the most.
In the 90s, a large driver of recurring revenue for software was that when the OS and hardware landscape changed, you made a new version of the software adapted to that change, and then, if customers wanted to upgrade their OS or hardware (frequently for reasons unrelated to your product), that made them come back to you to pay for the new version of your product. Under the new legal regime, you would be forced to give them the update for free, so if you sell an actual perpetual software license, you have a fixed amount of revenue on one hand, and a potentially unlimited liability to incur additional costs on the other.