Software Rentals Legalized

Businesses such as Internet cafes, airport kiosks, and other locations where customers may want to rent a computer could be encouraged by a new licensing option that relaxes a longstanding prohibition against renting Microsoft desktop software. The owners of such premises, as well as office equipment leasing companies, will be able to add rental rights to their computers at a nominal price. The new rights could boost sales and use of legal software in piracy-prone areas and generate some business for partners, but rental rights are currently allowed only in certain markets.

Popular, but Not Always Legal

An estimated 40 million computers around the world are used for rental purposes. A high proportion of these rentals are illegal because the End User License Agreements (EULAs) for Microsoft software prohibit renting. Rentals are permitted under only a few scenarios, such as when companies lease computers from hardware manufacturers or rent software on a monthly basis from a service provider under the Service Providers License Agreement (SPLA).