Abstract: The invention is a licensing method between a server, a first client, and a second client for an electronic file. The method is preferably implemented with computer software, but may be implemented with any suitable device. In the preferred embodiment, the licensing method includes four steps, in which step (0) includes transferring the electronic file to the first client, step (1) includes transferring a first license to the first client, step (2) includes modifying the first license, and step (3) includes transferring a second license to the second client. The transition from step (1) to step (2) is preferably triggered by an event, such as the transfer of the electronic file from the first client to the second client. Although the preferred embodiment includes all four steps, alternative embodiments may include any suitable permutation of any suitable subset of steps (1), (2), (3), and (4), with or without repeated steps.