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XXCOPY TECHNICAL BULLETIN #93


From:    Kan Yabumoto           tech@xxcopy.com
To:      XXCOPY user
Subject: The XXCOPY Licensing and Pricing Policies
Date:    2010-01-01
===============================================================================

Introduction:

    In order to keep our order form relatively clutter-free and just on the
    points, we have to leave out some details in our licensing and pricing
    policies from the main pages of the XXCOPY web site.  On the other hand,
    we would like to be honest to our customers about our licensing and
    pricing policies.  So, in this page, we would like to disclose the
    "fine Print".
    
    The next section summarizes XXCOPY's overall pricing policy.  The
    remaining sections cover further details.


XXCOPY's License Fee in a Nutshell:

    Other than the Freeware and the Test Drive packages, XXCOPY's various
    packages are sold for a license fee and maintenance fee (which we
    often call subscription fee).  The initial license fee is paid by
    all customers that covers the minimum maintenance period of one year.

    The initial license fee grants the user the usage license in perpetuity.
    The maintenance fee (for the privilege of downloading the latest update
    version and for priority technical support by Email or sometimes by
    Phone) beyond the first year is optional.  You may continue to use the
    XXCOPY product that you have already downloaded even after the update
    subscription has expired.

    So, XXCOPY's license fee and the subscription rules can be viewed
    differently depending upon how you deal with system updates.
   
        For a user who buys a computer and never updates the OS version
        nor service pack, XXCOPY's license is a "buy-once-use-forever"
        product.  Your privilege to download the newest version of XXCOPY
        expires after 12 months of purchase.  The license itself is good
        in perpetuity.  It's the subscription (to cover updates and
        priority technical support) that expires.

        For a user who keeps up with new Windows versions and service packs,
        XXCOPY's pricing model is more like a subscription service.  You
        pay an initial fee that covers the perpetual user license plus a
        one-year maintenance for updates and support.  Thereafter, you
        should subscribe the maintenance for update subscription and priority
        technical support.  Each additional year of subscrition is priced
        at 1/4 (25%) of the initial license fee.  This is equivalent for
        paying for the new license approximately once in every four and
        a half years.  You may order a license with a multi-year subscription
        up front.

    Note that XXCOPY displays a version-mismatch warning when it encounters
    a new (untested) Windows environment (for example, immediately after
    you install a new service pack.  You will need a new update version of
    XXCOPY that supports the new environment.  This is why we strongly
    suggest that you keep your update subscription in good standing.


The XXCOPY License (Initial Fee):

    All of XXCOPY's licenses are issued as a site license with the host count
    that determines the maximum number of computers (and similar devices)
    which are used and accessed with the XXCOPY program (See the details). 

    The total price for an XXCOPY-Pro (and other related products) is a sum
    of the license fee (determined by the Host Count) and the maintenance fee
    that covers the privilege to download the latest version of the same type
    of the software product and priority technical support (usually by Email
    and sometimes by phone) for a certain period (measured in months).
    That is, the fee is determined by a combination of the Host Count and the
    Subscription Period.

    The standard price chart we publish on our web pages are always shown with
    the minimum subscriptoin period (1 year).  The chart is based upon the
    Corporate License (we may offer discount on various situations).

           *****************************************************
            Standard Site License License and Subscription Fees
           *****************************************************

        License     Host Count   Per-computer   Initial     Subscription
        Package    (# Computers)    Price     License Fee   Fee (per yr)
       ------------------------------------------------------------------
        XPLIC-002         2         US$50        US$100        US$25
        XPLIC-005         5           $40          $200          $50
        XPLIC-010        10           $36          $360          $90
        XPLIC-020        20           $30          $600         $150
        XPLIC-050        50           $24        $1,200         $300
          ...                                       ...

    The prices shown on our web site like this are based upon the minimum
    subscription period of one year.  We accept an order with an extended
    update subscription (beyond the first one year) up front.  We encourage
    customers to order a multi-year subscription with the initial order if
    their organization's administrative overhead is relatively high
    (as typically the case with government agencies).


The Maintenance Fee (Update Subscription Fee):

    XXCOPY's initial license fee includes the maitenance fee for the first
    year that covers both the priority technical support and the privilege
    to download the latest update version.  The maintenance fee (update
    subscription fee) is priced at 1/4 (25%) of the initial license fee
    per year.

    Pixelab does not normally contact you to alert impending expiration
    of your update subscription.  You may let the subscription expire and
    still continue to use the XXCOPY product.  However, in order to ask for
    priority technical support or to download the latest update version,
    you need to have an up-to-date status in subscription.

    You may re-activate an expired subscription by paying for the lapsed
    months at a prorated rate (2% of the initial license fee per month)
    plus forward 12 months.  This rate is very similar to the regular
    subscription rate (25% per year) except that it does not earn bonus
    months.

    If you renew subscription before expiration, or order an extended
    (multi-year) subscription up front, you earn bonus months that will be
    added to the expiration month of the subscription with the formula below.
    
      M = (N - 1) x 2;
      where M: the number of bonus months
            N: the number of years in subscription

    We chose our pricing formulas so that loyal customers who maintain an
    uninterrupted subscription pay the least in the long run.


Keep Your License Information Handy:

    All paid customers receive a delivery Email that always contains the
    license information.  It will be used to validate your license status
    that is represented by two hyphenated 10-digit numbers:

     -----------------------------
      Serial Number: xx-xxxx-xxxx
      License Code:  xx-xxxx-xxxx
     -----------------------------

    Keep this information handy for pasting in the "Authentication Box"
    on XXCOPY's update request form (e.g., Update Request Form).
    and also for Email correspondence with us.

    We ask our paid customers to include the license information in Email
    asking for techical assistance.  Your Email without the license
    information will be treated as if you were a Freeware user --- we respond
    to such an Email on a time-available basis.


Price for Consultants, Resellers and Dealers:

    If you are a consultant and making a purchase on behalf of your client,
    you should consider becoming an XXCOPY dealer.  If you are a software
    reseller or a software dealer, you are also eligible to register as XXCOPY
    dealer and enjoy a dealer discount.  There is no obligation or minimum
    order to become a dealer.  Our server keeps your company information for
    convenience.

    To register or to log-in to the dealer page, visit the following site

       http://www.xxcopy.com/dealer 

    You should create your own account even if your colleague has already
    has a dealer account with us (you keep your own personal password).


License Fee in the Long Run --- comparison of strategies:

    We stated that due to the subscription fee, the cost of long-term ownership
    of the XXCOPY license with full maintenance service (the privilege for an
    uninterrupted update subscription and priority technical support) is
    approximately equivalent to making a new purchase every 4.5 years.

    Let us explain how it is the case with four possible scenarios.

    Scenario 1 (Pay for a 5-year subscription up front):

      Consider a 5-computer license (initial license fee priced at $100).  If
      you order an extended maintenance service with a 5-year subscription
      (with four extra year beyond the first year), you pay $200 as the total
      which is twice as much as the standard (with a single-year subscription)
      package.  The total is the sum of the standard license fee of $100 plus
      4 extra years of update subscription ($25 x 4 = $100 extra).  Such an
      order earns a total of 7 bonus months.

      If this order is placed on 2010-01-01, then, the subscription will
      expire on 2013-08-31.  This is equivalent to placing a new order on
      2014-08-01 which is slightly over 4 years and 7 months (about 4.5
      years) after the initial purchase was made.

    Scenario 2 (A one-year package with 2 renewals of two years each)

      Consider a different strategy where you buy a standard license package
      without an extended subscription.  Then, say you make two renewals of
      two years each thereafter.  You earn 3 bonus months each time,
      therefore, after spending a total of $200 in this scheme, the final
      expiration date will be 2015-06-30.
 
    Scenario 3 (A one-year package with 4 renewals every year):    

      As another alternative, you acquire a standard license without multi-
      year subscription at first.  Then, you make a one-year subscription
      for the next four years before expiration.  You earn one bonus month
      on each occasion.  After four renewals of subscription (your total
      expenditure of $200),  your ultimate expiration date will be 2015-04-30.

    Scenario 4 (A one-year package, expiration, and re-activate):

      Lastly, let us consider a scenario of the opposite extreme where you
      let the subscription expire and re-activate your subscription at the
      very last month that still give you an advantage of an re-activation.
      The latemost month to re-activate a subscription of a standard (single
      year subscription) license purchased on 2010-01-01 is in the month of
      February, 2014.  At that time, you pay for the 38 lapsed months plus
      12 forward months that is to pay for a total of 50 months at the rate
      of 2% ($5.00) per month (you pay $100 for the re-activation) that will
      set the new expiration date of 2015-02-28.
    
    Summarizing the four diffent subscription strategies, the outcomes are
    not very different.  Starting on the same initial date of 2010-01-01,
    after paying for $200 (twice the standard license fee) and five years
    later, the ultimate expiration date will be only within several months
    apart.  The best case scenario (Scenario 1), the expiration date will be
    2015-08-31.  The worst case was the sloppy case by re-activating the
    expired subscription by paying for the lapsed months, the final date will
    be 2015-02-28.  Note that in Scenario 4, you pay the same amount ($200)
    in the five plus years and you not only had the shortest period, but also
    had more than three years during which time, you were not eligible for
    update versions.

    The formula to compute the re-activation fee and the bonus months are
    chosen to reward loyal XXCOPY customers who keep an uninterrupted
    subscription and the best overall price while we allow old customers
    with an expired subscription to come back into the subscription without
    too much penalty.



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