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A named user license is an exclusive licensure of rights assigned to a single named software user. The user will be named in the license agreement. Named user licenses can be composed of "single seat licensures," more commonly known as "volume license accounts". The named user license is issued for known user names or a list of email addresses in some cases.
A wider definition involves named user licenses specific to one user who is typically licensed to use a product on multiple computers; although the most common type of named user license enables users to log on to no more than three computers.
Concurrent named user licenses are another type of license permitting users to log on to multiple computers but are restricted to the number of uses. For example a word processor concurrent license might be used by 50 people at varying times but only 10 can use it at any one time (concurrently).
The details of concurrent licenses can vary widely, depending on the licensing policies of the issuing organization.
After purchasing software, the user’s name is listed on the named user license agreement. This permits the user to be the only one permitted to access and use the product. Named user licenses for specific software permit the user to perform endless installations of the software, but only they can access it often with limitations to how many computers can run it simultaneously.
Microsoft uses named user licenses on most of its Windows operating systems (OSs). Under a Windows named user license, the license restricts installation to no more than three computers.
A volume licensing program also may be a named user license, where the name on the license is the name of an organization, permitting anyone the organization authorizes to use the product. This is appropriate for wide usage of a product throughout an organization and usually applies to licensing from a minimum of five, up to an unlimited maximum number of users.
The idea is to offer a highly discounted license for multiple users as would be common with a product that everyone needs, for example word processing software.