It extends WooCommerce to a full-blown software store, including license activation, license download, activation emails, and more. The WooCommerce Software Add-on gives you the ability to manage license keys and activations via your store. Define your products as software on the product edit page, and after doing that, you can define software specific properties.
Customers buy the software like any other product, but after doing so (after placing the order) they will receive an automatically generated license key from the system in an e-mail with the order picking. Order emails contain the key, activation email and other activations. You can resend these emails using the built-in "send" button in WooCommerce on the orders screen. If you ever roll out a paid software update, you can define valid update keys and an update price that your customers can use. They will simply have to enter their license details when purchasing.
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