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In this tutorial, Sanjay Tek discusses the process of creating a software license agreement for software makers aiming to regulate the use of their products. He emphasizes the importance of defining the scope of the license, considering various types, such as single-user, multi-user, and site licenses. A site license permits usage within a specific location, while a block license offers pricing per block of licenses (e.g., 10, 20, or 30) with potential discounts for bulk purchases. Understanding these options is crucial for establishing appropriate licensing terms.