A more thorough explanation:

A shrink-wrap license is a type of software license that is printed on the outside of a software package. By opening the package, the buyer becomes legally bound to abide by the terms of the license. The license usually seeks to prohibit users from making unauthorized copies of the software, limit use of the software to one computer, and disclaim warranties.

For example, when you buy a new computer program, the license agreement is often included in the packaging. The agreement may state that by opening the package, you agree to the terms of the license, which may include restrictions on how you can use the software and limitations on the manufacturer's liability.

Another example is when you purchase a new video game. The license agreement may be printed on the outside of the game's packaging, and by opening the package, you agree to the terms of the license, which may include restrictions on how you can use the game and limitations on the manufacturer's liability.

In summary, a shrink-wrap license is a type of software license that is printed on the outside of a software package. By opening the package, the buyer becomes legally bound to abide by the terms of the license, which may include restrictions on how the software can be used and limitations on the manufacturer's liability.