It's a license agreement if they sell you a license to use the software under their conditions, so it's a license because they say it is. Personally I can go along with that, especially if I can transfer the license to somebody else after I quit using it. The part I'm unclear on is how they can expect a court to allow that any illegal clause doesn't invalidate the entire license. Like they're telling the court beforehand what's legal. It doesn't matter for an end user like me, but it could apply to their competitor.