The license choices in the File Picker dialog box allegedly do NOT impact actual access to those files in Moodle. That is, Moodle does not do anything differently to a file based on whether the user specified a particular license type during the file upload process using the File Picker. This should be clearly explained in the File Picker's help. This should also be available as a contextual help in the File Picker next to the dropdown list of license choices.

Without such an explicit and clear statement, there are currently several myths floating around. For example, one common myth advises users that choosing 'All Rights Reserved' for a file somehow makes that file 'unavailable' for other users from 'somewhere else.' Such vague and unclear misunderstandings of the license choices can be very quickly cleared up if the File Picker dialog box had clear contextual help explaining that there is in fact no programmatic link between the license dropdown and how Moodle actually treats files.