There are two types of licensing options available for using Amazon RDS for Oracle:
Bring Your Own License (BYOL): In this licensing model, you can use your existing Oracle Database licenses to run Oracle deployments on Amazon RDS. To run a DB instance under the BYOL model, you must have the appropriate Oracle Database license (with Software Update License & Support) for the DB instance class and Oracle Database edition you wish to run. You must also follow Oracle's policies for licensing Oracle Database software in the cloud computing environment. DB instances reside in the Amazon EC2 environment, and Oracle's licensing policy for Amazon EC2 is located here.
License Included: In the "License Included" service model, you do not need separately purchased Oracle licenses; the Oracle Database software has been licensed by AWS for your use subject to Section 10.3.1 of the AWS Service Terms . "License Included" pricing is inclusive of software, underlying hardware resources, and Amazon RDS management capabilities.