For many Oracle products, like Database, the license agreement or ordering documents contain minimum license requirements. Often, quantities of licenses necessary to satisfy the minimum licensing terms varies based on the edition of the license in question. For instance, customers are required to purchase additional Oracle Database Standard One Edition and Standard Edition Named User licenses in increments of 5. Database Enterprise Edition requires customers to purchase 25 Named User licenses in increments of 25 per processor.

These minimum license quantities can become critical in an audit by Oracle. If Oracle concludes that a customer using Database Enterprise Edition has a license shortage, Oracle will generally require the licensee to purchase an additional 25 User licenses for each processor on the hardware with the Oracle installation. This minimum quantity applies, even if the licensee needs only one license.

The time to negotiate the minimum license requirement is when licensee negotiates the Oracle License and Service Agreement (OLSA). It may be too late to negotiate the minimum quantities if Oracle has already presented a compliance demand. It is generally advisable to work with experienced counsel to help you get the best terms possible during software license negotiations.