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    The phrase used to describe a type of purchase or license agreement associated with tangible, shipped goods, for example boxed versions of computer software, or software which is purchased and distributed over the Internet. Like shrink wrap licensing, the click wrap purchase agreement is “bound with the product by plastic wrap (shrink wrap)” and by purchasing the product, removing the shrink wrap and opening the product, the consumer agrees acceptance of the terms and EULA. Where click wrap differs from shrink wrap licensing is on electronically distributed product. Here, a screen or Web page will launch with an “I Agree” button to check and submit before consumers can use the product.

    See “Is Software Ownership the Same as Licensing?” in Webopedia’s “Did You Know…?” section.