For Approval: Microsoft Permissive License

[dlw]

17 USC § 106
Subject to sections 107 through 122, the <OWNER> of copyright under this 
title has the <EXCLUSIVE> rights to do and to authorize any of the 
following: . . .

17 USC § 101
A “transfer of copyright ownership” is an assignment, mortgage, 
exclusive license, or any other conveyance, alienation, or hypothecation 
of a copyright or of any of the exclusive rights comprised in a 
copyright, whether or not it is limited in time or place of effect, <NOT 
INCLUDING> a nonexclusive license.

If your don't <OWN> the copyright you <CAN'T> license a work (§ 106).
A nonexclusive licensee can't receive any <OWNERSHIP RIGHTS> (§ 101).
So what is a "sublicense"? You can't license what you don't own.

It is commonly said that <PARTY A> may "sublicense" a nonexclusive for a 
work with the consent of the copyright owner but this requires 
contractual privity with the "owner of the copyright" and is actually a 
"transfer" of a specific non-exclusive license from <PARTY A> to <PARTY 
B> with permission of the <OWNER>. This means <PARTY A> relinquishes his 
already existing license to <PARTY B>.

This is not the same thing as <PARTY A> granting a new license to <PARTY 
B> -- only the <OWNER> of a copyright may do that (§ 106).