License Grant Language: How Should it be Drafted?

Ken Adams at Adams Drafting raised an interesting question about the proper drafting of a license grant in a software license. In particular, Adams questions the drafting of the following clause:
Acme hereby grants Widgetco a nonexclusive, perpetual, irrevocable, royalty-free, fully paid-up, worldwide license to the Software (that license, the “License“).
I agree with Adams that [...]

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