Distributed Ledger Software License Token Management
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Solution Overview
Problem
Current software license management systems lack accurate and efficient validation during purchase and deployment, leading to increased risks of non-compliance and audits due to labor-intensive reporting and limited validation processes.
Innovation Solution
Implementing a distributed ledger system for software license management, where licenses are converted into tokens on a primary ledger, allowing for perpetual verification checks, token generation, and secure wallet management to ensure compliance and prevent unauthorized software use.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional license validation methods are used, then the system is simpler to implement, but license validation is not performed or performed on a limited basis, leading to increased audit risk
Solution Approach 1:
The patent creates a digital copy of the license in the form of a token that is written to the distributed ledger. This token serves as an immutable record of the license entitlement, enabling continuous verification without requiring complex validation systems. The token contains all necessary license information and can be verified by any participant in the network.
Solution Approach 2:
The patent replaces traditional mechanical/license-based validation systems with a distributed ledger technology system. Instead of relying on centralized databases or complex validation software, the system uses a distributed ledger to store and verify license tokens, eliminating the need for complex validation mechanisms while improving reliability.
2Productivity
If limited validation is performed during purchase and deployment, then the process is faster and simpler, but accurate software compliance reporting becomes extremely difficult and labor intensive
Solution Approach 1:
The patent performs the validation action in advance by writing the license token to the distributed ledger during the purchase and deployment process. This preliminary action ensures that complete and accurate compliance data is captured at the source, eliminating the need for later manual reporting and verification efforts.
Solution Approach 2:
The patent enables continuous verification of license compliance through the distributed ledger. The token remains on the ledger and can be verified continuously without interruption, providing ongoing compliance tracking without requiring periodic manual reporting or audit preparations.
3Ease of operation
If dependent on ELA for license management, then the system is easier to operate, but the organization is exposed to increased risk of software licensing audits
Solution Approach 1:
The patent implements continuous feedback mechanisms through the distributed ledger that provide real-time visibility into license status and compliance state. This feedback enables organizations to proactively manage their license portfolio and prepare for audits, reducing the risk associated with relying solely on ELA.
Data Source
AI summary
Systems and methods for software license management using a distributed ledger are disclosed. A method for software license management may include: receiving, from an agent executed by an electronic device in a computer network, a request for a new software license for the electronic device or for a user; determining that there are no available tokens for associated with the software license in a license inventory; obtaining a license for the software; generating a token for the license, wherein the token comprises an identification of a license type and a software identifier; writing the token to a license distributed ledger with an indication that the token is available; reserving the token for the electronic device or the user and writing the reservation to the license distributed ledger; and adding a second token for the license to an electronic wallet associated with the electronic device or the user.