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    From:    Kan Yabumoto           tech@xxcopy.com
    To:      XXCOPY user
    Subject: The XXCOPY Licensing and Pricing Policies
    Date:    2010-01-01
        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
        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
        To register or to log-in to the dealer page, visit the following site
        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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