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License compliance means agreeing to abide by the terms of a software license. When you buy software for use on one computer or several networked computers, it comes with a valid license. The license protects the rights of software developers and is enforced by copyright laws.
If your software doesn’t have a valid license, it can also lack important documentation, warranty protection, or upgrade options. When you use unlicensed software, you may endanger your company’s reputation and risk incurring civil penalties or other remedies allowed by law.