Understanding Adobe Licensing Changes in 2024

Since 2013, the software publisher Adobe has been converting its licensing structure to a subscription-based system. In December 2021, Adobe continued this migration to subscription-only sales by announcing that, for Acrobat, “there will be no new purchases of perpetual upgrade plans for customers in the perpetual licensing programs.” Since the release of this statement, Adobe has also announced the end of new Acrobat perpetual licenses altogether. These statements have shaken up the Adobe licensing world for many companies, who are now required to make various licensing changes.

These recent Adobe licensing changes were preceded by an even more shocking announcement from Adobe in 2017 when they began informing users of their discontinuation of older versions of Creative Cloud applications and that, per the terms of their license agreement, they were no longer entitled to use certain versions of the Creative Cloud applications. The statement came with a warning that “should users continue to use the discontinued version(s), they may be at risk of potential claims of infringement by third parties.”

In the wake of these changes, corporations need to be aware of where their current Adobe license position lies and understand if they are operating out-of-compliance products.

Why is Adobe Pushing These Changes?

Adobe’s move to a subscription model in 2013 increased recurring revenue, enabling more frequent software upgrades, bug fixes, and other strategic goals. This transition to a subscription-only model was inevitable, and further licensing changes are expected.

The 2017 announcement regarding Creative Cloud discontinuations likely stemmed from legal issues. In 2002, Dolby, a sound and visual tech company, began allowing Adobe to house Dolby software in various Creative Cloud applications with the agreement that Adobe would pay a royalty fee for each sale containing Dolby software. After years of speculating that Adobe wasn’t meeting the terms of this agreement, Dolby pursued an audit request followed by a lawsuit for copyright infringement and breach of contract. Adobe’s statement to users mentioning a “risk of potential claims of infringement by third parties” is assumed by many to refer to Dolby as the third party. Issuing a discontinuation of specific Creative Cloud licenses containing Dolby software may help mitigate Adobe’s liability.

How Users Need to Move Forward

Adobe’s move away from perpetual licenses requires companies to upgrade their plan if they wish to receive continued software updates and product support. For those who have not yet converted to subscriptions, it is advised that they transition to the new model as soon as possible. Additionally, those utilizing Adobe Acrobat should note that their ability to purchase perpetual licenses ended in June 2024, and support for their existing perpetual licensed applications will be terminated in June 2025.

Users who have outdated Creative Cloud software need to discontinue their use of and eliminate the software immediately. If users are still operating the outdated software, intentionally or unintentionally, they place themselves out of compliance with Adobe’s licensing agreements. This non-compliance is a massive and unnecessary liability for users and companies. We also caution that while many companies may have upgraded to the new subscription model, it is essential that they uninstall any of the outdated versions of the applications that may still be installed on user devices as the presence of these applications also create a risk of third-party claims of infringement.

Understanding and complying with software licensing agreements is crucial. This period is also an opportune time for companies to assess their license needs and ensure they are adequately covered.

How Can Anglepoint Help?

Anglepoint’s experts can help you assess your current environment in response to these Adobe licensing changes. They will help you understand your current and future requirements to enable you to make the best decisions for your organization. If you would like to discuss your organization’s unique requirements and outline the next steps and remediation, get in touch with our experts.