Blockchain-based software subscription and licenses management system

Abstract

Current software licensing models exhibit shortcomings in transparency, security, and adaptability. Addressing these challenges, this study presents a novel blockchain-based licensing system using the Ethereum platform. By employing smart contracts and the ERC721 and ERC20 token standards, the system ensures automated, transparent, and secure license agreement enforcement and facilitates license token operations. Influenced by the rise of subscription licenses and the implications of the UsedSoft court decision, the research designs a blockchain-driven subscription license model, analyses the UsedSoft case’s impact on license transfers, and formulates specialized smart contracts for varied licensing models. The approach signifies a marked advancement in contemporary software licensing practices.