The trade of used software is currently associated with a considerable organisational overhead. Since software licenses are no physical goods, but simply represent the right to use a given software product or are a license key that can easily be copied, on each transaction (transfer) it needs to be made sure that
1. the previous owner will not use the license anymore after the transfer has been completed
2. the previous owner has not sold the license to a diﬀerent person or organisation
3. the sold license is genuine and has been issued by the software manufacturer or a certiﬁed third party.
4. Furthermore, the new owner needs to be able to testify that his purchased license is valid by tracing his used license to its original issuing.
Currently, all these checks are performed by used software traders that are familiar with the kind of software they are trading so that they can verify the validity of the traded licenses.
As part of the process they will require the seller to sign that he will not be using the software anymore. Furthermore, they keep a record of all completed transfers so that they can trace any license traded by them back to its original issuing should its genuineness be doubted.
License on Blockchain
To solve these problems, we have developed a solution: License on Blockchain.
With License on Blockchain, we provide an approach that allows software licenses to be represented on the Ethereum Blockchain.
This makes it possible for the first time to consistently map software licenses for various software products and to provide simple instructions on how to verify blockchain-managed software licenses.
Why LOB Clearing AG?
Secure License Transfer
… through the latest blockchain technology
… through years of experience with various manufacturers