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info [at] li-x.comWe are happy about the continuous interest in li-x. We’ve answered the most pressing questions about our service. You can also find the FAQ on our website: https://www.li-x.com/en/beta/faq
What is li-x?
li-x is Europe’s first software licence exchange. Companies, institutions, and public authorities trade their software licences here.
How does li-x work?
li-x is based on an automated trading system, which enables our users to sell surplus licences and buy new ones quickly, easily, and legally. The selling function is made available after the licences have undergone our Clearing (see How does the clearing process work?). li-x checks if the prerequisites for a safe and legal trade are fulfilled. After a transaction has been completed, the buyer receives all documents related to the purchased licences. This way, they are prepared for audits, being able to provide proof of the chain of title.
What are the advantages of li-x?
– li-x merges buy and sell orders quickly and fuss-free.
– On li-x, there are no intermediaries. That means companies earn and save more money when selling and buying licences directly with li-x.
– Selling surplus licences generates money and improves the performance of your company.
– The purchase of software licences via li-x pays off too, since used software does not wear down and is inexpensive compared to the newest releases.
– Every user can access important information about their company’s software licences. Find out the current value of your licences, if you have too many or not enough licences, and if the acquisition of used software licences can be refinanced by the sale of licences which are no longer needed.
How much does li-x cost?
During the BETA phase, li-x is free of charge for all users. For buying and selling companies, li-x solely charges a small commission which amounts to 12 percent of the transaction amount.
How does the clearing process work?
In order to make your licences tradeable, they require a legal scan. We call this procedure Clearing; an interactive process between li-x and our clients. You simply upload the legal documents related to the licences you with to sell on li-x. Subsequently, our Clearing unit verifies the accuracy of the documents as well as the licence version and checks whether the prerequisites for the sale are met. Clearing is free of charge. In the case of more complex licence agreements which take more time to go through, we will arrange on an individual Clearing price with you.
How long does Clearing take?
Typically, Clearing will be completed within one day. In case the licence agreements are more complex though, Clearing may take longer.
Is the trade with li-x legal?
Generally, used software can be sold and resold again within the EU and Switzerland. According to the European Court of Justice, converse remarks in licence agreements are ineffectual. For the sale to be legal, a number of requirements have to be met. A.) Your company must have acquired indefinite general rights of use over the software. B.) Your company must have paid the usage fees for the software completely. C.) Your company must have made the software unusable, so that it can no longer be used by you after it has been sold.
If all of these conditions are met, your licences are considered “cleared”. The licences listed on li-x now possess information, not only about its initial owner, but also about the contract numbers of licences from volume contracts. The chain of title is, therefore, easily accessible and ensures you are prepared for software audits. Sales and purchases made on li-x conform to the current European judicature and common compliance requirements for IT.
How does li-x generate the market price?
li-x calculates the licence prices like a stock market; the market price is determined by supply and demand. As a seller, you enter a minimum price with your software offer and place your sell order. As a buyer, you simply place your order with the desired quantity of licenses and a maximum price. Then our “trading engine” calculates the current market price, based on the desired amount, the minimum price and the maximum price. For products with no demand, li-x sets a list price which is based on common market prices.
How do I most strategically set my maximum price?
Setting the maximum price depends on the current price, the latest price alteration, and the trend. If the trend and the latest price alteration are negative then it is reasonable to assume that a lower price will find a buyer. Moreover, the maximum price depends on the urgency of the purchase. If the purchase is urgent, the buying price should be higher than the current price, since the highest buying price takes priority on li-x.
As a seller, how do I set the best selling price?
Determining the minimum price depends on the current price, the latest price alteration, and the trend. If the trend and the latest price alteration are positive, then it is reasonable to assume that a higher price will find a buyer. Moreover, the maximum price depends on the urgency of the sale. If the sale is urgent, the selling price should be lower than the current price, since the seller with a lower price is more likely to sell their licences first.
Can I edit the minimum or the maximum price after they have been set?
If the order has not been processed yet, or only partially, you can still edit the minimum and maximum price. All you need to do is cancel the order and place a new one with the changed values for minimum and maximum price. This is not possible for orders which have already been completed.
What happens during the engine run exactly?
During the engine run, our trading engine calculates the price at which the highest quantity of licences can be traded. This ensures that as many of the placed buy and sell orders as possible can be realized.
When does the engine run take place?
The engine run takes place once a day, at 8:00 PM (GMT). Once the trading activity increases on li-x, we will shorten the intervals so that trade is possible several times a day.
Will each order be completed?
Each order will be completed, as long as supply and demand cohere.
What happens if my order is only partially completed?
If your order is only partially completed, the rest of the order remains on li-x and will be reconsidered in the next engine run.
How do I know if my order has been completed?
When an order has been completed, you will receive a status message informing you of the process of your order. You can also go to ‘My Orders’ and see whether your order has been completed.
Who activates the sell and buy orders?
Only an authorised representative can activate sell and buy orders. An authorised representative is a user who has received advanced rights from the administrator. The regular user may place an order, but for it to become active the order must be approved by an authorized representative. If you’re an administrator, you can change the statuses of users in the menu point ‘Settings – User management’.
How much time do I need to invest in li-x?
li-x does most of the work for you. With a minor time investment, you can sell and buy software licences: an order can be placed in just four clicks. The gathering of licences is easy, logical, and quick. It may take some time to provide the documents needed for the verification of the chain of title, but once the documents have been processed, you can access them in a mouse-click and be more prepared for audits.
