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A software license is a binding agreement between the developer and user, dictating usage, sharing, access to source code, copying, altering, redistribution, installation, and frequency of use. There are two validation techniques: shrink-wrapped licenses activate upon opening packaging, while installation agreements apply to downloaded software upon clicking "accept." Users must agree to the End User License Agreement (EULA) displayed during installation. EULAs outline terms and conditions, restrictions, and limitations for software use.