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In this video tutorial, we learn about Microsoft Licensing and the core principle of licensing. According to the Product Terms, User licenses must be assigned to users, while Device licenses must be assigned to devices. The key factor is determining what constitutes a User or a Device, with the keyword being Person. For example, if there is a single user account for multiple receptionists using software, each person would need a User license. However, if the software allows Device licensing, a single device license can be assigned to the computer at the reception.