The acronym 'TM' stands for 'Trademark' in software licensing and usage. It is used to indicate that a particular name, logo, or slogan is legally protected and associated with a specific product or service. This helps companies maintain their brand identity and prevents others from using their trademark without permission. In the context of software, using a trademark can signal quality and reliability, as customers often trust well-marketed products. Companies can also pursue legal action if their trademark is infringed upon, ensuring brand recognition and consumer trust are preserved.