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Licence to thrill: Everything you need to know about library software licences

This article explains the different types of licences available for library software. Library software licences can feel overwhelming, especially with all the technical jargon and fine print.  This short guide breaks down the main types of library software licences, helping you feel more informed and confident when speaking with vendors.  

We have included a handy comparison table of the various library software licence types. Given the size and complex nature of the topic, if you want to know more about licences, digital content, and copyright matters, I have included some book recommendations.  

Library Licences

What is a perpetual licence?

Traditionally, library management systems were sold with a perpetual licence, meaning you paid a one-time fee and could use the software indefinitely. Unlike physical property, however, a software licence does not usually allow resale or transfer to another organisation, i.e. you can’t legally re-sell or transfer the software to someone else later on. 

While perpetual licences offered long-term access, they came with challenges. Large upfront costs could be difficult for smaller libraries to manage, and software vendors often had less incentive to maintain or improve products for existing customers once the sale was complete. 

Today, perpetual licences are becoming increasingly rare as most vendors move towards subscription models. 

What is a subscription licence? And why SaaS is popular for libraries

Most modern library software solutions now offer subscription licences, typically renewed annually or monthly. This is especially common with cloud-based library systems, where hosting, updates, maintenance, and support are bundled into one ongoing service. 

This model is known as Software as a Service (SaaS). 

Key benefits of SaaS for libraries: 

  • Lower upfront costs: Easier for small libraries to budget and gain approval for. 
  • Automatic updates: Software improvements and security patches are applied without the need for your IT support. 
  • Overnight backups and hosting: Reducing the risk of data loss and system downtime. 
  • Regular vendor support: Vendors have an ongoing relationship with customers, encouraging better service and reliability. 
  • Enhanced security compliance: SaaS providers often manage data protection requirements like GDPR compliance, crucial when handling user data. 

SaaS can make powerful library management systems accessible even to small or volunteer-run libraries, without technical headaches. 

Library software licence types: Site, Concurrent, and Named User explained

When choosing your library system, it’s important to understand the different licence models available. Here are the main types: 

Site licence 

A site licence allows the software to be installed and used across an entire organisation, whether that’s a law firm, barristers’ chambers, school, prison, or community centre. All users within the organisation can typically access the library system without needing individual licences. 

Advantages: 

  • No need to monitor or limit user numbers. 
  • Ideal for public access catalogues and shared devices. 
  • Often includes remote or home access (subject to your contract). 

 

Concurrent licence 

A concurrent licence (also called a simultaneous licence) permits a certain number of users to access the software at the same time. For example, if your library system has 10 concurrent licences, up to 10 users can be logged in at once. If an 11th user tries to log in, they must wait until someone logs off.  

However, in web-based systems, tracking active sessions in real time can be technically complex. and this licence model isn’t supported by all library software vendors. At Bailey Solutions, we offer site licences for public users and named access for administrators, rather than concurrent models, to keep things simpler and more reliable for everyone. 

Advantages: 

  • Cost-effective if only a proportion of users need access at any one time. 
  • Scalable – additional licences can often be added as needed. 

Considerations: 

  • You may need to monitor usage to ensure enough licences are available during busy periods. 
  • Not technically possible for all systems 

 

Named user licence 

A named user licence is assigned to specific individuals, such as library managers, administrators, or volunteer helpers who use the back-end of the system. 

Advantages: 

  • Pay only for those who actively manage the library system. 
  • Often combined with a site or concurrent licence for public catalogue users. 

Quick Comparison: Types of Library Software Licences

If you’re short on time or just need a quick comparison, here’s a snapshot of the most common library software licences and how they stack up. 

Choosing the right licence for your library system

When thinking about licence models, consider: 

  • Size of your user base – consider staff, students, volunteers, members. 
  • Expected peak usage – how many users will access the system at the same time? 
  • Budget flexibility – can you afford a regular subscription? 
  • Need for remote access – many people are online these days! 
  • Technical support available – SaaS reduces the need for in-house IT expertise. 

Libraries with limited budgets or fluctuating user numbers often find SaaS subscriptions with concurrent licences the best fit. Meanwhile, a named user licence suits smaller teams focused mainly on library admin or catalogue management.  

You will be glad that you have considered all these questions because your vendor will want to know your situation. Your vendor will take you through your pricing options, so make careful notes and record your conversations so that you can refer to them later. Vendors will also put everything in writing so check carefully for errors or omissions. 

Some final tips

By understanding your options clearly, you can choose a library management system that fits your needs, without unwanted admin surprises. 

  • Always check the fine print in all of your contracts and licences: hosting, data backups, upgrades, and GDPR compliance should ideally be included in your package. 
  • Clarify renewal terms in advance: some SaaS contracts auto-renew unless cancelled early. 
  • Ask about scaling options: good library systems should grow with your community. 

Recommended reading for licences and other information management issues

Licences are complicated, especially if you are new to the topic. As an information person, my first instinct if I don’t understand something is to reach for a good book. Here are some recommendations: 

Licensing Digital Content: A Practical Guide for Librarians by Lesley Ellen Harris.  

  • Audience: Library and information professionals managing digital resources. 
  • Strengths: Clear guidance on licence terminology, model clauses, and negotiation tips. 
  • UK Relevance: While written from a North American perspective, the principles are sound and very transferable. 
  • Why it’s useful: Helps you read, understand, and negotiate licences for e-resources, databases, and software. 

 

Information Law: Compliance for Librarians, Information Professionals and Knowledge Managers by Charles Oppenheim and others 

  • Audience: UK-focused professionals working in libraries, archives, HE/FE, etc. 
  • UK Relevance: Excellent. Covers copyright, data protection, and contracts from a UK legal standpoint. 
  • Why it’s useful: Gives you the legal framework surrounding licensing and contracts. It’s readable but authoritative. 

 

Practical Copyright for Library and Information Professionals by Paul Pedley 

  • Audience: Library staff, especially in schools and public libraries. 
  • UK Relevance: Highly relevant. Covers licensing within copyright, especially useful if you deal with digital or multimedia resources. 
  • Why it’s useful: Includes real-world examples and scenarios — good for training sessions or policy development. 

Clare Bilobrk

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Frequently Asked Questions (FAQs):

What is a library software licence?

A library software licence is a legal agreement that defines how you can use a library management system. It outlines the rights and limitations of usage, such as who can access the software, how many users are allowed, and whether updates and support are included.

What’s the difference between a perpetual licence and a subscription licence?

A perpetual licence is a one-time payment that lets you use the software indefinitely, but often lacks ongoing updates and support.
A subscription licence is paid monthly or annually and includes continuous access, updates, support, and hosting—especially common in cloud-based (SaaS) systems.

Why are subscription licences (SaaS) becoming more popular for libraries?

Subscription licences offer lower upfront costs, automatic updates, built-in data backups, and vendor support. This model reduces the need for in-house IT support and ensures software stays up to date and secure, which is ideal for libraries with limited resources.

What is a site licence for library software?

A site licence allows unlimited users within one organisation to access the library system. It’s perfect for schools, prisons, community libraries, or any setting where multiple people need shared access, including public catalogues and remote logins.

How does a concurrent licence work?

A concurrent licence limits the number of users who can access the system at the same time. For instance, if you have 5 concurrent licences, only 5 users can be logged in simultaneously. This can be cost-effective for libraries with fluctuating usage but may require monitoring during peak times.

What is a named user licence?

A named user licence is assigned to specific individuals, such as library managers or volunteers. Only these named users can log in. This model is ideal for small teams focused on managing the library’s back-end system and is often combined with site licences for public access.

How do I choose the right licence for my library?

Consider:

  • How many users need access.

  • Peak usage times.

  • Budget flexibility (one-off payment vs. ongoing subscription).

  • Remote access needs.

  • In-house IT support availability.

Speak to your vendor openly about your specific situation—they can guide you through the best options.

What should I watch out for in a library software licence contract?

Always check:

  • Hosting, backups, and upgrade inclusions.

  • GDPR compliance.

  • Renewal terms (e.g., auto-renewal clauses).

  • Flexibility for scaling.

  • Support and training provisions.

Reading the fine print prevents costly surprises later.

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