A software license is the legal right to install, use, access, display, run or otherwise interact with a software program. When software is acquired, customers do not own a physical thing; rather they use the product of the thoughts and knowledge of the programmers who wrote the software.

Software is an intellectual property which is intangible and not easily defined or identified by physical form factors. Hence, software is copyrighted. A copyright is an Intellectual Property Right and is protected by copyright law.

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Full Packaged Product (FPP). FPP refers to the packaged boxes of licensed product that can be purchased from a local software retail store.

Original Equipment Manufacturers (OEMs). OEM software is pre-installed when you purchase a new PC. This is the easiest and most economical way for customers to acquire their software.

Volume Licensing. Microsoft's Volume License programs provide volume pricing for customers acquiring five or more software licenses. Customers for this type of licensing are usually companies who have volume requirements but do not need several copies of media and documentation, and need easy software asset management.

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The EULA grants the right to install one copy of the software on one computer. It specifies whether the license is perpetual or non-perpetual. It governs single software titles acquired by an individual through an FPP and software acquired with the purchase of a computer through an OEM license.

The Volume License PUR is an appendix to the Volume License Agreement. It details specific use rights for all software contained in Volume License programs. It includes additional use rights which are specified in the agreement such as downgrade rights, re-imaging rights, ability to use other languages in place of the original language ordered.