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. A software license agreement can vary as much as the software it relates to, and software and software license models are constantly changing and evolving.  A software license agreement may be a product of significant negotiation between the licensor and the licensee. This is more likely to be the case where a licensee has more leverage or where the licensor has a strong economic interest in closing the licensing transaction.A software license agreement details how and when the software can be used, and provides any restrictions that are imposed on the software

A software license agreement also defines and protects the rights of the parties involved in a clear and concise manner. Most of software license agreements are in digital form and are not presented to the purchaser until the purchase is complete.Nearly all applications are licensed rather than sold. There are a variety of different types of software licenses. Some are based on the number machines on which the licensed program can run whereas others are based on the number of users that can use the program  India very well recognizes the importance of the software licensing agreement. It is used in all sectors of Indian economy be it the finance sector, law, outsourcing, marketing. There are many reasons why you should have a software license agreement as, it prevents abuses of your software,if you fail to have one of these agreements signed by your client, there is nothing stopping them from trying to replicate it or copy it for their own benefit.