An electronic representation of a term or condition in your license agreement. Policies are contained in license certificates. For example, a certificate for a company could include the following tags for policies:
Each license unit is consumable.
Each license unit allows nodal reuse. (A user can use it multiple times from different workstations.)
The certificate does not require an license service provider assignment.
Duplicate certificates can be installed (an important tag for Master License Agreement accounts).
The certificate is an evaluation license certificate.
The certificate has a soft stop. (The policy allows users to use the service even though a license unit is not available. However, a network administrator receives notification that the company is out of compliance.)
The certificate uses secrets.
The certificate is digitally signed.
A policy is tied to a license certificate and a policy manager, not to the licensing service. A policy can be flexible, simply by changing (or replacing) a license certificate.