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A software license is a legal agreement between the developer and user, defining usage rights and restrictions. Users may not copy, alter, or redistribute software without permission. License validation can occur through shrink-wrap or installation agreements. Shrink-wrap licenses activate upon opening the packaging, while installation agreements activate upon clicking 'accept' during installation. Users must agree to the terms outlined in the End User License Agreement (EULA) displayed on-screen. Software licenses outline how software can be used and installed.