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It's revenue gained from the licensing of a certain product or service as opposed to the physical product itself.

For example a software vendor can sell 10 copies of it's software or it can sell 10 licenses, the licenses are just permission to use the product just like the physical product only it becomes more convenient to use a licensing method if you have many different assets to manage.

Businesses use a licensing approach to their software more than general consumers.

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Q: What is License revenue?
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