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A software license is a contract between the entity that created and supplied an application, underlying source code, or related product and its end user.
A software license agreement typically has broad-form confidentiality provisions that also provide that certain items fall into the bucket of one or the other party (e.g., the software for a licensor, certain data for a licensee, etc.).
Public domain. This is the most permissive type of software license. Permissive. LGPL. Copyleft. Proprietary.
As a general rule, companies do not own the software that they license. The corollary is that they then do not, unless expressly agreed, possess the right to transfer or assign the licensed software they use to a new entity when later involved in a merger, acquisition or internal corporate restructuring.
In general, it is the most restrictive type of licensing agreement wherein the original code was written by the programmers are not available to the users. Thus they can use the software but they cannot modify it or redistribute it.
A software license agreement gives a licensee a non-exclusive, non-transferable right to use software. A software license agreement defines how that software can be used and what happens in the event of breach.
Wisegeek explains software licensing as a type of contract which exists between the person of company who produces a type of software, and the end user, or person who purchases or downloads the software to use. This means that there are many different types of software licenses.
User agreements like EULAs are legally binding contracts between the software author and the end-user. End User License Agreements are enforceable as long as it is clear that it is a contract and both parties can understand the terms.