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🎫 Licensing Philosophy

🎯 Principios Core

╔════════════════════════════════════════════════════════════════════════════╗ ║ ✅ DO │ ❌ DON'T ║ ╠══════════════════════════════════════╪════════════════════════════════════╣ ║ Proteger IP razonablemente │ Always-online requirement ║ ║ Grace periods generosos │ Hardware dongles ║ ║ Offline activation option │ Rootkits o kernel drivers ║ ║ Clear trial limitations │ Artificial crippling ║ ║ Easy legitimate use │ Punish false positives ║ ║ Respect user privacy │ Invasive telemetry ║ ║ Reasonable seat limits │ Single-machine locks ║ ╚════════════════════════════════════════════════════════════════════════════╝

💡 Reality Check

The Piracy Paradox

┌─────────────────────────────────────────────────────────┐
│ Piracy rate in audio software: 30-60% (inevitable)     │
│                                                         │
│ Our goal: Convert 70% of POTENTIAL customers           │
│           NOT eliminate 100% of piracy                 │
│                                                         │
│ Anti-piracy ROI: Usually NEGATIVE                      │
│   - Development cost: High                             │
│   - Support burden: Higher                             │
│   - Legitimate user friction: Highest                  │
│   - Piracy reduction: Minimal                          │
│                                                         │
│ Better strategy: Focus on VALUE, not walls             │
└─────────────────────────────────────────────────────────┘

Case Studies

Adobe (2013-2017): Aggressive DRM → User backlash → Subscription model Splice: No DRM on samples → Huge growth through value proposition iZotope: Reasonable licensing → High customer loyalty

What Actually Converts Pirates

  1. Convenience - Easier than cracking
  2. Updates - New features, bug fixes
  3. Support - Professional assistance
  4. Stability - No crack-related crashes
  5. Professional Use - Legal compliance for studios

🎁 Trial Strategy

┌─────────────────────────────────────┐
│ 30 days FULL FEATURED               │
│                                     │
│ ✓ All features unlocked             │
│ ✓ No artificial limits              │
│ ✓ Projects save normally            │
│ ✓ No watermarks/noise               │
│                                     │
│ After 30 days:                      │
│ → Purchase required                 │
│ → Projects still open (read-only)   │
└─────────────────────────────────────┘

Option 2: Feature-Based

┌─────────────────────────────────────┐
│ CORE FEATURES ONLY                  │
│                                     │
│ ✓ Basic audio processing            │
│ ✓ Up to 2 instances                 │
│ ✓ Standard quality                  │
│ ✗ Advanced algorithms               │
│ ✗ Unlimited instances               │
│ ✗ High-quality oversampling         │
└─────────────────────────────────────┘

Option 3: Hybrid (Best Balance)

┌─────────────────────────────────────┐
│ Phase 1: 30 days FULL               │
│ Phase 2: Core features forever      │
│                                     │
│ Allows long-term evaluation without │
│ creating dependency then cutting off │
└─────────────────────────────────────┘

Critical Rule: Never Data Hostage

❌ NEVER: - Lock project files after trial - Add noise/watermarks to rendered audio - Corrupt or delete user data - Prevent opening saved projects

✅ ALWAYS: - Allow read-only access to projects - Graceful degradation to trial mode - Clear upgrade prompts (not nags) - Export to standard formats

Legally Allowed (But Don't Do It)

Technique Legal? Ethical? Recommended?
Always-online DRM ✓ ✗ NO
Hardware dongles ✓ ✗ NO
Limited activations ✓ △ MAYBE
Online-only activation ✓ ✗ NO
Machine fingerprinting ✓ △ YES (privacy-aware)
License server checks ✓ ✓ YES (with offline fallback)

Our Ethical Guidelines

  1. Transparency: User knows what data we collect
  2. Offline Support: Always provide offline path
  3. Privacy: Minimal data collection, no tracking
  4. Accessibility: Support for air-gapped studios
  5. Flexibility: Reasonable transfer/deactivation policy

💰 Business Model Considerations

Revenue Protection vs Customer Experience

High Protection ────────────────────────── Low Protection
High Friction                               Low Friction
Low Piracy                                  High Piracy
Angry Customers                             Happy Customers
Lower Revenue (paradoxically!)              Higher Revenue

                    ↓
            FIND THE BALANCE
                    ↓
        Moderate Protection + Great UX
              = Maximum Revenue

Pricing Strategy Integration

  • Lower Price + Easy Licensing > High Price + Strict DRM
  • Subscription model reduces piracy (ongoing value)
  • Educational discounts reduce student piracy
  • NFR (Not For Resale) for influencers/educators

🛡️ Security Layers (Reasonable Approach)

Layer 1: Basic Validation (90% effective)

  • License key format check
  • Simple signature verification
  • Expiration check

Layer 2: Server Validation (95% effective)

  • Online activation
  • Seat limit enforcement
  • Revocation support

Layer 3: Integrity Check (98% effective)

  • Binary signature check
  • Anti-tampering (basic)
  • Detect common cracks

❌ DON'T: Layer 4+ (Diminishing Returns)

  • Code obfuscation arms race
  • Anti-debugging
  • Kernel-level checks
  • Virtual machine detection (breaks legitimate workflows!)

📊 Success Metrics

Measure the RIGHT Things

❌ Don't Measure: - Crack sites taken down (whack-a-mole) - Number of validation checks - "Security score" from DRM vendor

✅ DO Measure: - Conversion rate (trial → paid) - Customer satisfaction (NPS) - Support ticket volume (licensing issues) - Revenue per user - Churn rate

Target Benchmarks

Conversion Rate:    > 5%  (audio plugins typically 2-7%)
License Support:    < 10% (of total support tickets)
Grace Period Usage: > 80% (most users have temporary issues)
Transfer Requests:  < 5%  (well-designed system needs few)

AudioLab Pro Licensing Model:

  1. Trial: 30 days full-featured
  2. Activation: Online OR offline options
  3. Validation: Every 30 days (with 7-day grace)
  4. Seats: 2 concurrent per license (reasonable for laptop + desktop)
  5. Transfers: Self-service, 3/year free
  6. Offline: Full offline activation support
  7. Data: No telemetry, minimal fingerprinting (CPU+MAC only)

Result: - Legitimate users: Smooth experience - Pirates: Mild inconvenience (not motivation for cracks) - Business: Sustainable revenue without customer hostility

📚 Resources

Further Reading

  • "The Psychology of Piracy" - Rob Reid
  • "Against Intellectual Monopoly" - Boldrin & Levine
  • Valve's experiments with regional pricing & piracy reduction
  • Spotify's impact on music piracy

Technical References