Maintaining software license compliance is essential for organizations to avoid legal issues, financial penalties, and damage to their reputation. Compliance ensures that software is used according to the licensing agreements set by the developer, which often includes restrictions on the number of installations and types of use. Regular audits and proper documentation of licenses help in verifying compliance. Failure to comply can lead to costly lawsuits or fines, and additionally, it can hinder an organization's ability to update or support their software effectively.