Differences Between Licenses and Permits

Before the Commercial Space Launch Amendments Act of 2004, a launch license was the only mechanism available to the FAA to authorize the launch of a launch vehicle. Under the CSLAA, an experimental permit differs from a license in several ways.

The FAA must determine whether to issue an experimental permit within 120 days of receiving an application. For a license, the FAA must make a similar determination within 180 days of receiving an application.
No person may operate a reusable suborbital rocket under a permit for carrying any property or human being for compensation or hire. No such restriction applies for a license.
A permit is not transferable. A license is transferable.
Damages arising from a permitted launch are not eligible for "indemnification," the provisional payment of claims under 49 U.S.C. 70113. To the extent provided in an appropriation law or other legislative authority, damages caused by license activities are eligible for the provisional payment of claims.
A permit must authorize an unlimited number of launches for a particular reusable suborbital rocket design. Although licenses can be structured to authorize an unlimited number of launches, no statutory mandate to do so exists.

The CSLAA does, however, keep many aspects of a license and experimental permit the same. These similarities include:

The FAA has authority to inspect a permittee's vehicle and operations,
The FAA has enforcement authority over a permittee,
The CSLAA provides administrative recourse, such as hearings,
A permittee may acquire excess launch or reentry property and services of the U.S. Government and third parties,
A permittee must demonstrate financial responsibility for harm to the U.S. Government and third parties,
A permittee must enter into a reciprocal waiver of claims with the U.S. Government,
A permit applicant may make use of safety approvals to streamline its application, and
The FAA is required to consult with other government agencies.