diff --git a/content/licensing/1.overview.md b/content/licensing/1.overview.md
index 3addec42..ad014312 100644
--- a/content/licensing/1.overview.md
+++ b/content/licensing/1.overview.md
@@ -128,6 +128,12 @@ If you change the `PUBLIC_URL` of an existing instance — for example, when mig
 
 To reuse the same license on the new URL without exceeding your license's activation limit, deactivate the license on the old instance **before** bringing the new one online.
 
+### Replicas and Horizontal Scaling
+
+A license binds to your project and `PUBLIC_URL`, not to a container, IP address, or instance identity. In a horizontally scaled deployment, every replica shares the same project database and the same `PUBLIC_URL`, so a single license key covers the entire cluster rather than each individual container.
+
+Set the license through the `LICENSE_KEY` (or `LICENSE_TOKEN`) environment variable at the service or task level so that every replica inherits the same value automatically. New containers spun up by autoscaling pick up the license on start without any manual setup or per-container retrieval.
+
 ## Resolution Flow
 
 If your instance exceeds its entitlements — for example, after downgrading a plan — the Studio surfaces a **Resource Resolution** screen for admins. This screen lists each entitlement that requires action: