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A legal document that outlines the licensing terms for a particular software. These terms usually list the manners in which the software may or may not be used. In regard to fonts, there are several common topics that foundries must consider allowing or disallowing. Among these are: Number of Output devices covered by license, server installation, back-up copies, embedding, distribution to a service bureau, modifications, transfer of license, &c.
For an in-depth discussion of issues, read The End User's Manifesto!
For a real-life case study, read Alternative to Fedra Serif B
Because of a Eula, I need something different
EULAs--the Devil's Advocate
Need Help with an EULA
Petition for a sane EULA
The standard EULA allows embedding in commercial PDFs and modifications for personal use:
Adobe EULA (for some fonts)