Business owners aren't usually known for turning down opportunities to save money. But if you haven't at least considered volume software licensing, you may be doing just that.

In fact, the whole concept of software licensing is often misunderstood, even by many tech-savvy businesspeople. When you buy software, be it a boxed copy from a retailer or downloaded from the Internet, you do not own the software. Rather, you have bought a license to use it. The license sets down the terms and conditions governing how you can use the software, where you can install it, and how long the license is valid. (For more on software licenses, see Understanding Software Licenses.)

Unless stated otherwise, most software licenses are valid for only one computer. If you buy a single license and install the accompanying software on more than one machine, you may be violating the terms of the agreement and breaking the law.