Appendix C: Glossary

Application Programming Interface

Information relating to how software communicates with the operating system and other programs, including file formats, data export capabilities, etc. The API is generally essential to writing interfaces and other programs that interact with and exchange information with the software.

API

Acronym for Application Programming Interface.

ASCII

An acronym for American Standard Code for Information Interchange. An almost universally accepted format for exchanging text based information. ASCII format is, however, limited in that it does not preserve the formatting of the text or any special characteristics of the document (e.g., footnotes, tables, bullet points).

Backups

Duplicate copies of data, generally stored at an off-site, secure facility.

Central processing unit

Abbreviated "CPU." The portion of a computer that controls the processing and storage of data.

Client computer

A personal computer or workstation connected to a network file server.

See also File server.

Client-server network

A type of network in which server computers provide files to client computers. See client

See also File server.

Consequential damages

Consequential damages are damages that indirectly result from a breach of contract. This type of damages includes lost profits, damage to data, damage to business reputation, etc. Consequential damages are sometimes called "incidental," "indirect," or "special" damages.

CPU

Acronym for Central Processing Unit.

See also Central processing unit.

Direct damages

Direct damages are those damages that directly result from a breach of contract. This type of damages includes, for example, the fees paid to the vendor under the agreement.

Enterprise

The collection of entities comprising a particular business (e.g., all affiliates, subsidiaries, joint ventures, and other related companies).

File

A collection of data or information stored under a specified name on a disk. Examples of files are programs, data files, spreadsheets, databases, and word-processing documents.

File server

A central computer used to store files (e.g., data, word-processing documents, programs) for use by client computers connected to a network. Most file servers run special operating systems known as "network operating systems (NOS)." Novell Netware and Windows NT are common NOS.

See also Client computer.

See also Client-server network.

Implementation

The process by which software is made ready for use on a particular licensee's systems.

Indemnity

An obligation of a party to protect the other party to a contract from certain types of claims by third parties. The primary indemnity provided by vendors in software license agreements is the obligation to protect the licensee from claims by third parties alleging the software infringes their intellectual property rights.

LAN

Acronym for local area network.

See also Local area network.

License grant

The language in a license agreement that defines the license being granted to the licensee. For example, "Licensor hereby grants Licensee a perpetual, non-exclusive license to use the Licensed Software for its internal business purposes."

Licensee

The person or entity that is licensing a particular software application from a licensor.

Licensor

The person or entity that is licensing a particular software application to others.

Limitation of liability

A clause found in most software license agreements limiting one or both parties' liability for damages. Most limitations of liability are divided into two parts. First, an exclusion of all liability for consequential damages. Second, an overall cap on direct and all other types of damages. This cap is typically set at all or some portion of the license fees paid for the software.

Local area network

Abbreviated "LAN." A network of computers and other devices generally located within a relatively limited area (e.g., within a particular office, building, or group of buildings).

Object code

The machine readable version of a computer program.

See also Source code.

Open Source Software

Software that is distributed under a license that promotes continued development and free use of the program. Open source software is typically distributed without any warranties, indemnities or other contractual protections. Such software is essentially provided "as-is" to the licensee.

Service Bureau

Generally refers to a licensee's use of software for the benefit of unrelated third parties. For example, using an accounts payable accounting application to process the data of businesses that are completely unrelated to the original licensee.

Source code

The version of a computer program that can be read by humans. The source code is translated into machine readable code by a program called a "compiler." Access to the source code is required to understand how a computer program works or to modify the program.

See also Object code.

Term license

A license in which the licensee may only use the software for a defined period of time, typically one to five years.

Vendor

The person or entity that is licensing a particular software application to others.

WAN

Acronym for wide area network.

See also Wide area network.

Wide area network

Abbreviated "WAN." A network of computers and other devices distributed over a broad geographic area.

Workstation

A personal computer connected to a network. A workstation can also refer to a high performance computer used for intensive graphics or numerical calculations.