Cisco Traditional 

Cisco employs two types of license models – Traditional or Classic Licensing and Smart Software Licensing.
Traditional Right-to-Use licensing (RTU licensing) has been used to allow you to order and activate a specific license type and level via command line. Uploading an extra license file is no longer necessary.

Cisco Right to Use License (RTU License)

LanBase images provide basic Layer2 functionality and counts as the default license on devices, including:
– QoS
– Port-Security
– 1588 PTP
– Ethernet/IP
– Profinet
IPService: Provides following L3 routing features:
– RIP
– OSPF
– ISIS BGP
– Policy-based routing
– IPV6

To determine which license is running on your device, do the following:
Switch# show version
To verify which is the active image:
Switch# show license
To activate IPService License:
Switch# license right-to-use activate ipservice acceptEULA (End User License Agreement)
Evaluation license is turned on when customer accepts EULA.
Switch(config)# license boot level ipservices
Switch# Write
Switch# reload
On the next reload, the ipservices Eval license will display active and in-use, and the LanBase RTU will display active and not-in-use.
To stop using the ipservices RTU on this box, and start re-using it on another box (where it needs to be explicitly activated), the following sequence should be used:
Switch (config)# License right-to-use deactivate ipservices
Switch (config)# no license boot level ipservice
Switch (config)# end
Switch # write
Switch # reload

Traditional PAK License

There are two methods of PAK delivery. The first is a paper certificate sent via standard postal carrier. The second, and more efficient method, is to select E-Delivery for electronic delivery of the PAK. The E-Delivery SKU’s are differentiated from standard SKU’s by having “L-” prefix in the SKU name. Select this option, when available and it will save a lot of time in shipment.

Most distributers deploy PAK licenses on devices before shipment.

Cisco Smart License

Most new Cisco products have started to support smart licenses instead of traditional licenses. Also, after updating the IOS XE on devices like Cisco Catalyst 3650 and 3850, the licensing method automatically upgraded from old fashion to smart license.
Moreover, Cisco PLR license work similar to PAK licenses to activate all product instances in high-secure environments with no connectivity to the Internet.