I would call it a "subscription" - I've heard other people call it "leasing software" but 'subscription' seems to be much more popular these days...

>Good try :)
>
>>It's called 'Subscription". :)
>>
>>>
>>>Is there a term for an application purchased/sold on the basis that the customer must pay every year. If the customer does not pay the application stops working. I am trying to find a term or words that describe this type of approach.
>>>
>>>TIA.