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What is Freeware and Shareware?

Freeware
Freeware refers to software that the software copyright owner gives away for free. They still own the copyright in the software and can establish the terms under which it can be used and distributed. Many freeware programs will include some information from the owner about how it can be used and any restrictions that may apply. You are legally bound to abide by any conditions the owner requires.

Shareware
The term shareware refers to software that the software author and / or copyright owner has decided to give people the opportunity to try first before deciding if they want to purchase it or not. You are allowed to try the software, generally for a specified period of time. After that, you are expected to either pay the owner or discontinue using the software and to remove it from your computer system.