NakodaX

NakodaX blog/Source Protection·3 min read

How do you end a source code license when the term ends?

A contract alone cannot stop licensed code running after the term ends. With NakodaX Source Protection, the key files are encrypted and run only while the customer's license is valid. When the term ends without renewal, you revoke it and the protected files stop working at the next key request.

Pallav Boonlia

By Pallav Boonlia

Founder & CTO, NakodaX ·

A protected software module running during its license period and becoming inert beyond a clear expiry boundary.
A license the software enforces for itself means the contract finally says what it means.

Licensing source code to customers is common in enterprise software. A customer wants it for compliance, for changes, or for peace of mind. The vendor agrees, sets a term and signs.

Then the term ends and the customer does not renew. The software keeps running as it did the day before. The vendor has a contract that says the license expired, and a product that does not know.

The customer already has the code. Is protection pointless?

This is the first objection vendors hear. If the customer can read it, why protect anything?

Because the question is not who can read it. It is who may run it. A patent does not stop anyone reading the blueprint. It makes using the idea without permission clearly wrong. Protected code goes further: the software stops working when permission ends.

What does a contract alone give you?

A clause and the option to audit or sue. Both are slow, and both need you to notice the problem first. Most vendors do not sue a customer over a lapsed license, so expired licenses quietly keep running.

What does NakodaX change?

Source Protection encrypts the modules that carry your real value. Inside the customer's approved environment, during the term, the software behaves exactly as before.

Each customer has their own license, with an end date and a limit on how many deployments run at once. When the term ends, you revoke or let it end. The customer still has every file, but the protected parts stop working at the next key request. There is no audit to schedule and no letter to send.

Does this make renewals easier?

It gives the customer a real reason to talk to you before the date. Renewals happen on time, and your finance team can see which licenses are active. You can also suspend a license and resume it later.

Protect only the modules a competitor could not easily rebuild. Leave the rest as normal source, so the customer's engineers stay productive.

What does this not do?

The running software is readable in memory on a licensed machine. A change takes effect at the next key request, and a running process can continue until its cache refreshes. NakodaX keeps the keys and licenses, but your code is cloned by the protect worker to make the release.

The takeaway

Licensing code was never the hard part. Enforcing the end date was. Now the code and the contract agree.

Related product

NakodaX Source Protection

Let vendors and customers build or run software without receiving selected proprietary source code in readable form.

See how it works

Common questions

Can licensed software stop working when the license ends?
With Source Protection, yes. The protected files need a key from NakodaX, and a revoked or expired license does not get one.
Does the customer still get the source code?
They get the ordinary files. The key files you protect are encrypted.
Can I pause a license instead of ending it?
Yes. You can suspend a license and resume it later, or revoke it for good.

Try this on your own code.

Start a free trial, or tell us what you share and with whom, and we will show you how NakodaX handles it.