I have had the privilege of seeing multiple generational disruptions across the software industry over the last few decades. I have seen software companies have gone from bootstrap to enterprise.
Customers have gone from loving a company to distancing themselves from it. One thing I have observed is a difficult conversation worth sharing: read the license terms. Not to parse the “gotchas” or the legal wall of text, but to understand what kind of product you are dealing with.
Open licensing terms mean you are dealing with a product that shows maturity.
Here is an example. At IPinfo, our entry level product is IPinfo Lite, licensed under CC BY SA 4.0 without a EULA.
That means the license is commercially permissible and distributable. The attribution requirement also helps us handle end user issues directly. If you are a broadcasting or streaming company, viewers with complaints come to us, not you.
That is our entry level product. As you move to our API product or database downloads, our sales team and sometimes leadership have direct discussions with you about pricing and licensing. It sounds complicated, but we are transparent about the process and aim to find pricing that respects both parties.
What does the rest of the industry do? Generally one of two things: extremely restrictive licensing terms, or no license at all.
Look at the legacy IP geolocation providers, and their licensing terms tend to be restrictive from the start. One of the more popular (yet highly inaccurate) vendors offers a free product with EULA clauses that limit usage significantly. You cannot expose their data outside of development without breaching the license.
There is precedent for legacy providers taking legal action even when a product is marketed as “free to download.” Many of these providers rely on a business model that does not require ongoing investment in product quality, since revenue comes from licensing enforcement rather than product improvement. Even when something looks easy to download or use, it is worth checking how the provider enforces its license over time.
Then there are emerging companies, many of which skip licensing altogether. A missing or unclear licensing model is often a sign of an immature data business. Relying on their product carries two risks: they may not have a mature process for running a data company, and they may introduce licensing terms later that surprise you.
The point is simple. Licensing tells you what kind of product you are dealing with. We are transparent about our IPinfo Lite licensing, and for our paid products, we invite a conversation.
