220-1102 Question 741
Single answerPerpetual license agreementA small accounting firm purchased a perpetual license for a desktop tax preparation application three years ago. The office manager asks a technician to install the software on a newly purchased replacement PC because the old PC failed. The original installation media and product key are available, but the firm's software support contract expired last year. Which action should the technician take FIRST to stay compliant with the license agreement while restoring service for the user?
- A
Install the software on the new PC using the existing product key, because a perpetual license allows unlimited transfers and upgrades
- B
Verify whether the perpetual license permits transferring the installation to replacement hardware, then activate it on the new PC if allowed
- C
Purchase a new subscription immediately, because perpetual licenses expire when support or maintenance ends
- D
Clone the failed PC's drive image to the new PC, because imaging bypasses licensing restrictions during hardware replacement
Show answer and explanation
Correct answer: B
Explanation
A perpetual license agreement typically grants the right to use a specific software version indefinitely after purchase, unlike a subscription, which generally ends when payments stop. However, perpetual does not mean unrestricted. In real support scenarios, technicians should review the vendor's EULA or licensing documentation before reinstalling on replacement hardware. Key points include whether the license is tied to a user or device, whether transfers are permitted, whether the old installation must be removed or deactivated, and whether activation support is still available. This aligns with standard software asset management and compliance best practices: verify license terms, document the asset transfer, and activate only within the rights granted by the vendor.
- A. Incorrect.
This is incorrect. A perpetual license generally means the customer can continue using the software indefinitely for the version purchased, but it does not mean unlimited installations, unrestricted transfers, or free upgrades to newer versions. Transfer rights depend on the vendor's end-user license agreement (EULA) or licensing terms.
- B. Correct.
This is correct. The technician should first confirm the transfer and activation rights in the software's license terms. Many perpetual licenses allow continued use of the purchased version, but may limit the number of devices, require deactivation of the old installation, or impose activation rules for replacement hardware. Verifying the EULA before reinstalling is the most compliant and practical step.
- C. Incorrect.
This is incorrect. The expiration of support or maintenance does not usually end a perpetual license. With a perpetual license, the organization typically retains the right to use the purchased version indefinitely, even if support, updates, or upgrade eligibility has ended. A new subscription may be needed for ongoing updates or cloud services, but not simply because support expired.
- D. Incorrect.
This is incorrect. Imaging or cloning does not override software licensing terms. Even if the software technically runs after imaging, the organization must still comply with activation limits, device assignment rules, and transfer provisions in the license agreement. This option reflects the misconception that technical workarounds eliminate legal licensing requirements.