<s>
Software	B-Application
monetization	I-Application
is	O
a	O
strategy	O
employed	O
by	O
software	B-Application
companies	I-Application
and	O
device	O
vendors	O
to	O
maximize	O
the	O
profitability	O
of	O
their	O
software	O
.	O
</s>
<s>
The	O
software	B-License
licensing	I-License
component	O
of	O
this	O
strategy	O
enables	O
software	B-Application
companies	I-Application
and	O
device	O
vendors	O
to	O
simultaneously	O
protect	O
their	O
applications	O
and	O
embedded	B-Application
software	I-Application
from	O
unauthorized	O
copying	O
,	O
distribution	O
,	O
and	O
use	O
,	O
and	O
capture	O
new	O
revenue	O
streams	O
through	O
creative	O
pricing	O
and	O
packaging	O
models	O
.	O
</s>
<s>
Whether	O
a	O
software	O
application	O
is	O
hosted	O
in	B-Architecture
the	I-Architecture
cloud	I-Architecture
,	O
embedded	B-Application
in	O
hardware	O
,	O
or	O
installed	O
on	B-General_Concept
premises	I-General_Concept
,	O
software	B-Application
monetization	I-Application
solutions	O
can	O
help	O
businesses	O
extract	O
the	O
most	O
value	O
from	O
their	O
software	O
.	O
</s>
<s>
Another	O
way	O
to	O
achieve	O
software	B-Application
monetization	I-Application
is	O
through	O
paid	O
advertising	O
and	O
the	O
various	O
compensation	O
methods	O
available	O
to	O
software	B-Application
publishers	I-Application
.	O
</s>
<s>
The	O
exact	O
origin	O
of	O
the	O
term	O
'	O
software	B-Application
monetization	I-Application
 '	O
is	O
unknown	O
,	O
however	O
,	O
it	O
has	O
been	O
in	O
use	O
in	O
the	O
information	O
security	O
industry	O
since	O
2010	O
.	O
</s>
<s>
It	O
was	O
first	O
used	O
to	O
articulate	O
the	O
value	O
of	O
licensing	B-License
for	O
cloud-hosted	B-Architecture
applications	O
,	O
but	O
later	O
came	O
to	O
encompass	O
applications	O
embedded	B-Application
in	O
hardware	O
and	O
installed	O
on	B-General_Concept
premises	I-General_Concept
.	O
</s>
<s>
Today	O
,	O
software	B-Application
monetization	I-Application
broadly	O
applies	O
to	O
software	B-License
licensing	I-License
,	O
protection	O
,	O
and	O
entitlement	O
management	O
solutions	O
.	O
</s>
<s>
Software	O
constitutes	O
a	O
significant	O
part	O
of	O
a	O
software	B-Application
company	I-Application
or	O
device	O
vendor	O
's	O
intellectual	O
property	O
(	O
IP	O
)	O
and	O
,	O
as	O
such	O
,	O
may	O
benefit	O
from	O
strong	O
security	O
,	O
encryption	O
,	O
and	O
digital	O
rights	O
management	O
(	O
DRM	O
)	O
.	O
</s>
<s>
Depending	O
on	O
a	O
company	O
's	O
particular	O
use	O
case	O
,	O
they	O
can	O
choose	O
to	O
implement	O
a	O
hardware	O
,	O
software	O
,	O
or	O
cloud-based	B-Architecture
licensing	B-License
solution	O
,	O
or	O
by	O
open	O
sourcing	O
software	O
and	O
relying	O
on	O
donations	O
and/or	O
compensation	O
for	O
support	O
,	O
customization	O
or	O
enhancements	O
.	O
</s>
<s>
A	O
hardware-based	O
protection	O
key	O
,	O
or	O
dongle	B-Device
,	O
is	O
best	O
suited	O
to	O
software	B-Application
publishers	I-Application
concerned	O
about	O
the	O
security	O
of	O
their	O
product	O
as	O
it	O
offers	O
the	O
highest	O
level	O
of	O
copy	B-Application
protection	I-Application
and	O
IP	O
protection	O
.	O
</s>
<s>
Although	O
a	O
key	O
must	O
be	O
physically	O
connected	O
in	O
order	O
to	O
access	O
or	O
run	O
an	O
application	O
,	O
end	O
users	O
are	O
not	O
required	O
to	O
install	O
any	O
device	B-Application
drivers	I-Application
on	O
their	O
machines	O
.	O
</s>
<s>
A	O
software-based	O
protection	O
key	O
is	O
ideal	O
for	O
software	B-Application
publishers	I-Application
who	O
require	O
flexible	O
license	O
delivery	O
.	O
</s>
<s>
The	O
virtual	O
nature	O
of	O
software	B-Application
keys	I-Application
eliminates	O
the	O
need	O
to	O
ship	O
a	O
physical	O
product	O
,	O
thus	O
enabling	O
end	O
users	O
to	O
quickly	O
install	O
and	O
use	O
an	O
application	O
with	O
minimal	O
fuss	O
.	O
</s>
<s>
Cloud-based	B-Architecture
licensing	B-License
,	O
on	O
the	O
other	O
hand	O
,	O
provides	O
automatic	O
and	O
immediate	O
license	O
enablement	O
,	O
so	O
users	O
can	O
access	O
software	O
from	O
any	O
device	O
including	O
virtual	B-Architecture
machines	I-Architecture
and	O
mobile	B-Application
devices	I-Application
.	O
</s>
<s>
It	O
is	O
in	O
the	O
best	O
interests	O
of	O
software	B-Application
companies	I-Application
and	O
device	O
vendors	O
to	O
take	O
the	O
necessary	O
measures	O
to	O
protect	O
their	O
code	O
from	O
software	O
piracy	O
,	O
a	O
problem	O
that	O
costs	O
the	O
global	O
software	B-Application
industry	I-Application
more	O
than	O
$100	O
billion	O
annually	O
.	O
</s>
<s>
However	O
,	O
software	B-Application
protection	I-Application
is	O
not	O
just	O
about	O
preventing	O
revenue	O
loss	O
;	O
it	O
is	O
also	O
about	O
an	O
organization	O
's	O
ability	O
to	O
protect	O
the	O
integrity	O
of	O
its	O
product	O
or	O
service	O
and	O
brand	O
reputation	O
.	O
</s>
<s>
An	O
independent	O
report	O
by	O
Vanson	O
Bourne	O
found	O
that	O
software	B-Application
vendors	I-Application
are	O
losing	O
revenue	O
due	O
to	O
rigid	O
licensing	B-License
and	O
delivery	O
options	O
.	O
</s>
<s>
Since	O
the	O
demands	O
of	O
enterprise	O
and	O
end	O
users	O
are	O
constantly	O
evolving	O
,	O
software	B-Application
companies	I-Application
and	O
device	O
vendors	O
must	O
be	O
able	O
to	O
adapt	O
their	O
pricing	O
and	O
packaging	O
strategies	O
on	O
the	O
fly	O
.	O
</s>
<s>
Customers	O
have	O
come	O
to	O
expect	O
the	O
freedom	O
to	O
consume	O
a	O
software	O
offering	O
on	O
their	O
own	O
terms	O
,	O
which	O
is	O
why	O
software	B-Application
companies	I-Application
and	O
device	O
vendors	O
are	O
increasingly	O
turning	O
to	O
flexible	O
licensing	B-License
solutions	O
.	O
</s>
<s>
An	O
entitlement	O
management	O
solution	O
makes	O
it	O
possible	O
to	O
activate	O
and	O
provision	O
cloud	B-Architecture
,	O
on-premises	B-General_Concept
,	O
and	O
embedded	B-Application
software	I-Application
applications	O
from	O
a	O
single	O
platform	O
.	O
</s>
<s>
Having	O
the	O
ability	O
to	O
manage	O
homegrown	O
or	O
third-party	O
licensing	B-License
systems	O
from	O
one	O
,	O
centralized	O
interface	O
is	O
conducive	O
to	O
an	O
operationally	O
efficient	O
back	O
office	O
.	O
</s>
<s>
Self-service	B-General_Concept
web	O
portals	O
allow	O
end	O
users	O
to	O
perform	O
a	O
variety	O
of	O
tasks	O
themselves	O
,	O
cutting	O
down	O
on	O
support	O
calls	O
and	O
improving	O
customer	O
satisfaction	O
.	O
</s>
<s>
Usage	B-Application
tracking	I-Application
provides	O
essential	O
business	O
insight	O
into	O
end-user	O
entitlements	O
,	O
as	O
well	O
as	O
the	O
consumption	O
of	O
products	O
and	O
features	O
.	O
</s>
<s>
The	O
use	O
of	O
commercial	O
advertisements	O
and	O
contextual	O
advertisements	O
have	O
been	O
a	O
foundation	O
of	O
software	B-Application
monetization	I-Application
since	O
free	O
software	O
first	O
hit	O
the	O
market	O
.	O
</s>
<s>
Many	O
traditional	O
device	O
vendors	O
still	O
see	O
themselves	O
as	O
hardware	O
providers	O
,	O
first	O
and	O
foremost	O
,	O
even	O
though	O
the	O
most	O
valuable	O
component	O
of	O
their	O
offering	O
is	O
the	O
embedded	B-Application
software	I-Application
driving	O
it	O
.	O
</s>
<s>
However	O
,	O
since	O
the	O
advent	O
of	O
the	B-Operating_System
Internet	I-Operating_System
of	I-Operating_System
Things	I-Operating_System
(	O
IoT	B-Operating_System
)	O
,	O
that	O
paradigm	O
is	O
shifting	O
toward	O
a	O
more	O
software-centric	O
focus	O
,	O
as	O
device	O
vendors	O
large	O
and	O
small	O
make	O
the	O
inevitable	O
business	O
transformation	O
into	O
software	B-Application
companies	I-Application
.	O
</s>
<s>
The	O
need	O
to	O
license	B-License
software	I-License
,	O
manage	O
entitlements	O
,	O
and	O
protect	O
trade	O
secrets	O
cuts	O
across	O
all	O
industries	O
;	O
from	O
medtech	O
to	O
industrial	O
automation	O
and	O
telecommunications	O
.	O
</s>
<s>
A	O
number	O
of	O
software	B-Application
companies	I-Application
are	O
some	O
of	O
the	O
most	O
profitable	O
businesses	O
in	O
the	O
world	O
.	O
</s>
<s>
For	O
example	O
,	O
Amazon	B-Application
is	O
the	O
dominant	O
market	O
leader	O
in	O
e-commerce	O
with	O
50%	O
of	O
all	O
online	O
sales	O
in	O
the	O
United	O
States	O
going	O
through	O
the	O
platform	O
.	O
</s>
<s>
Another	O
highly-successful	O
software	B-Application
company	I-Application
,	O
Apple	O
shares	O
a	O
duopoly	O
with	O
Alphabet	O
in	O
the	O
field	O
of	O
mobile	B-Operating_System
operating	I-Operating_System
systems	I-Operating_System
:	O
27%	O
of	O
the	O
market	O
share	O
belonging	O
to	O
Apple	O
(	O
iOS	B-Application
)	O
and	O
72%	O
to	O
Google	B-Application
(	O
Android	B-Application
)	O
.	O
</s>
<s>
Alphabet	O
,	O
Facebook	O
and	O
Amazon	B-Application
have	O
been	O
referred	O
to	O
as	O
the	O
"	O
Big	O
Three	O
"	O
of	O
digital	O
advertising	O
.	O
</s>
<s>
In	O
most	O
jurisdictions	O
around	O
the	O
world	O
,	O
is	O
an	O
essential	O
legal	O
obligation	O
for	O
any	O
software	B-Application
company	I-Application
to	O
utilize	O
their	O
software	B-Application
monetization	I-Application
strategy	O
in	O
compliance	O
with	O
antitrust	O
laws	O
.	O
</s>
<s>
Unfortunately	O
,	O
the	O
e-commerce	O
is	O
highly	O
susceptible	O
for	O
antitrust	O
violations	O
that	O
often	O
have	O
to	O
do	O
with	O
improper	O
software	B-Application
monetization	I-Application
.	O
</s>
<s>
Some	O
software	B-Application
companies	I-Application
systematically	O
utilize	O
price	O
fixing	O
,	O
kickbacks	O
,	O
dividing	O
territories	O
,	O
tying	O
agreements	O
and	O
anticompetitive	O
product	O
bundling	O
(	O
although	O
,	O
not	O
all	O
product	O
bundling	O
is	O
anticompetitive	O
)	O
,	O
refusal	O
to	O
deal	O
and	O
exclusive	O
dealing	O
,	O
vertical	O
restraints	O
,	O
horizontal	O
territorial	O
allocation	O
,	O
and	O
similar	O
anticompetitive	O
practices	O
to	O
limit	O
competition	O
and	O
to	O
increase	O
the	O
opportunity	O
for	O
monetization	O
.	O
</s>
<s>
The	O
second	O
investigation	O
focuses	O
on	O
Apple	B-Application
Pay	I-Application
,	O
which	O
allows	O
payment	O
by	O
Apple	O
devices	O
to	O
brick	O
and	O
mortar	O
vendors	O
.	O
</s>
<s>
Gig	O
economy	O
online	O
marketplaces	O
like	O
Uber	B-Application
,	O
Lyft	B-Application
,	O
Handy	O
,	O
Amazon	B-Application
Home	O
Services	O
,	O
DoorDash	O
,	O
and	O
Instacart	O
have	O
perfected	O
a	O
process	O
where	O
workers	O
deal	O
bilaterally	O
with	O
gigs	O
whose	O
employers	O
have	O
none	O
of	O
the	O
standard	O
obligations	O
of	O
employers	O
,	O
while	O
the	O
platform	O
operates	O
the	O
entire	O
labor	O
market	O
to	O
its	O
own	O
benefit	O
–	O
what	O
some	O
antitrust	O
experts	O
call	O
a	O
"	O
for-profit	O
hiring	O
hall.	O
"	O
</s>
<s>
Gig	O
workers	O
,	O
such	O
as	O
Uber	B-Application
drivers	O
are	O
not	O
employees	O
,	O
and	O
hence	O
Uber	B-Application
setting	O
the	O
terms	O
on	O
which	O
they	O
transact	O
with	O
customers	O
,	O
including	O
fixing	O
the	O
prices	O
charged	O
to	O
customers	O
,	O
constitutes	O
a	O
violation	O
of	O
the	O
ban	O
on	O
restraints	O
of	O
trade	O
in	O
the	O
Sherman	O
Antitrust	O
Act	O
of	O
1890	O
.	O
</s>
<s>
In	O
the	O
United	O
States	O
,	O
the	O
issue	O
of	O
whether	O
companies	O
such	O
as	O
Uber	B-Application
is	O
a	O
price-fixing	O
conspiracy	O
,	O
and	O
whether	O
that	O
price	O
fixing	O
is	O
horizontal	O
has	O
yet	O
to	O
be	O
resolved	O
at	O
trial	O
.	O
</s>
<s>
In	O
response	O
to	O
price	O
fixing	O
allegations	O
,	O
Uber	B-Application
publicly	O
stated	O
that	O
:	O
"	O
we	O
believe	O
the	O
law	O
is	O
on	O
our	O
side	O
and	O
that	O
"	O
s	O
why	O
in	O
four	O
years	O
no	O
anti-trust	O
agency	O
has	O
raised	O
this	O
as	O
an	O
issue	O
and	O
there	O
has	O
been	O
no	O
similar	O
litigation	O
like	O
it	O
in	O
the	O
U.S.	O
"	O
</s>
<s>
The	O
spirit	O
of	O
the	O
antitrust	O
law	O
is	O
to	O
protect	O
consumers	O
from	O
the	O
anticompetitive	O
behavior	O
of	O
businesses	O
that	O
have	O
either	O
monopoly	B-Application
power	O
in	O
their	O
market	O
or	O
companies	O
that	O
have	O
banded	O
together	O
to	O
exert	O
cartel	O
market	O
behavior	O
.	O
</s>
<s>
Monopoly	B-Application
or	O
cartel	O
collusion	O
creates	O
market	O
disadvantages	O
for	O
consumers	O
.	O
</s>
<s>
However	O
,	O
the	O
antitrust	O
law	O
clearly	O
distinguishes	O
between	O
purposeful	O
monopolies	B-Application
and	O
businesses	O
that	O
found	O
themselves	O
in	O
a	O
monopoly	B-Application
position	O
purely	O
as	O
the	O
result	O
of	O
business	O
success	O
.	O
</s>
<s>
The	O
purpose	O
of	O
the	O
antitrust	O
law	O
is	O
to	O
stop	O
businesses	O
from	O
deliberately	O
creating	O
monopoly	B-Application
power	O
.	O
</s>
<s>
Antitrust	O
law	O
does	O
n't	O
condemn	O
a	O
firm	O
for	O
developing	O
a	O
universally	O
popular	O
search	O
engine	O
,	O
such	O
as	O
Google	B-Application
,	O
even	O
if	O
that	O
success	O
leads	O
to	O
market	O
dominance	O
.	O
</s>
<s>
It	O
's	O
how	O
a	O
monopoly	B-Application
is	O
obtained	O
or	O
preserved	O
that	O
matters	O
—	O
not	O
its	O
mere	O
existence	O
.	O
</s>
