The technical officer wants to use a software to support KT activities, e.g. to create a design that will be licenced out to firms for commercialization. Is this allowed?

This depends on the terms of the licence agreement. The Procurement Officer should review the licence agreement to ensure that there are no restrictions on use of the software (or designs produced using the software) for commercial purposes. Very often, licences granted to CERN under academic conditions will preclude use for commercial purposes.