Here is a quick video link how to apply / install Cisco K9 license on a Cisco router.
Enjoy!
http://www.cisco.com/c/dam/en/us/td/docs/routers/access/sw_activation/license_install_demo/licesne_install_demo.swf
Also, here is how to activate an evaluation license package in video.
http://www.cisco.com/c/dam/en/us/td/docs/routers/access/sw_activation/eval_license_demo/eval_license_2_demo.swf