by 
The Curious Bag
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Microsoft Corp. requires that Microsoft Office be licensed for each desktop on which it is installed. Multiuser client desktops--commonly called terminal services--do not change the licensing agreement. One license per node is still required.
Significance
When you purchase software, you are buying the right to use it according to the license agreement. The software bits and bytes are still owned by Microsoft--as the software publisher in this case.
Considerations
Do not buy original equipment manufacturer software versions since they do not provide transfer rights. Volume licenses, which allow a single product to be used for multiple installations, and retail box licenses, which allow for restricted end-user installation, provide transfer rights.
Advantages
Microsoft volume licenses eliminate the costs of boxed software and packaging items. A genuine license also assures you that you will receive the latest updates, product features and any other ongoing improvements.
Benefits
Licensees receive the rights to make products that look and behave like MS Office products as well.
Support
Licensing also comes with Software Assurance, a maintenance program for servers and desktop applications. This combines the comprehensive maintenance package with customized purchase options, training, phone support and other necessary information technology tools.
Source:
DABCC: How Microsoft Office Is Licensed In A Terminal Services Environment
Office UI licensing developer center
More Information:
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