Operation

Computer software has to be "loaded" into the computer's storage (such as a hard drive, memory, or RAM). Once the software is loaded, the computer is able to execute the software. Computers operate by executing the computer program. This involves passing instructions from the application software, through the system software, to the hardware which ultimately receives the instruction as machine code. Each instruction causes the computer to carry out an operation -- moving data, carrying out a computation, or altering the control flow of instructions.
Data movement is typically from one place in memory to another. Sometimes it involves moving data between memories and registers which enable high-speed data access in the CPU. Moving data, especially large amounts of it, can be costly. So, this is sometimes avoided by using "pointers" to data instead. Computations include simple operations such as incrementing the value of a variable data element. More complex computations may involve many operations and data elements together.
Instructions may be performed sequentially, conditionally, or iteratively. Sequential instructions are those operations that are performed one after another. Conditional instructions are performed such that different sets of instructions execute depending on the value(s) of some data. In some languages this is known as an "if" statement. Iterative instructions are performed repetitively and may depend on some data value. This is sometimes called a "loop." Often, one instruction may "call" another set of instructions that are defined in some other program or module. When more than one computer processor is used, instructions may be executed simultaneously.
A simple example of the way software operates is what happens when a user selects an entry such as "Copy" from a menu. In this case, a conditional instruction is executed to copy text from data in a 'document' area residing in memory, perhaps to an intermediate storage area known as a 'clipboard' data area. If a different menu entry such as "Paste" is chosen, the software may execute the instructions to copy the text from the clipboard data area to a specific location in the same or another document in memory.
Depending on the application, even the example above could become complicated. The field of software engineering endeavors to manage the complexity of how software operates. This is especially true for software that operates in the context of a large or powerful computer system.
Currently, almost the only limitation on the use of computer software in applications is the ingenuity of the designer/programmer. Consequently, large areas of activities (such as playing grand master level chess) formerly assumed to be incapable of software simulation are now routinely programmed. The only area that has so far proved reasonably secure from software simulation is the realm of human art— especially, pleasing music and literature.

License
Software license gives the user the right to use the software in the licensed environment; some software comes with the license when purchased off the shelf, or an OEM license when bundled with hardware. Other software comes with a free software license, granting the recipient the rights to modify and redistribute the software. Software can also be in the form of freeware or shareware. See also License Management.

Patents
The issue of software patents is controversial. Some believe that they hinder software development, while others argue that software patents provide an important incentive to spur software innovation. See software patent debate.

Ethics and rights for software users
Being a new part of society, the idea of what rights users of software should have is not very developed. Some, such as the free software community, believe that software users should be free to modify and redistribute the software they use. They argue that these rights are necessary so that each individual can control their computer, and so that everyone can cooperate, if they choose, to work together as a community and control the direction that software progresses in. Others believe that software authors should have the power to say what rights the user will get.