The license could be of two types license and user license based on the scope of the feature.
The license will help us to maintain the usage of a feature. for example, it will hold data of scope, reset frequency, users, remaining users, allowed, used, and remaining user, etc
User license will work on the basis of user it will maintain usage of a feature on the basis of the user ids. it will also let us know the allowed, used, and remaining values for any feature
The license will get created on the publisher instance, subscriber instance, and super instance. we can update the license on the super instance only after updating the license on the super instance license on the publisher instance and the subscriber instance gets updated automatically