A license is the formal or legal permission to do or use something. A license can also refer to a document stating that permission has been given.
You are also a license holder for software such as Windows or Photoshop. You are then not the owner of the operating system or program, but a legal user. This also applies in the case of paid plugins.
At Milcraft we arrange licenses for templates, plugins and other things for you. We provide the necessary licenses to use the components on your website.