One embodiment of the present invention provides a system that uses digital certificates to facilitate enforcing licensing terms for applications that manipulate documents. During operation, the system obtains a credential, wherein the credential includes a private key and a digital certificate containing a corresponding public key. This digital certificate also contains a profile specifying allowed operations which can be performed on documents signed with the credential. Next, the system digitally signs a document using the credential, so that the resulting signed document is signed with the private key and includes a copy of the digital certificate with the profile specifying the allowed operations. The certificate issuer can subsequently revoke the digital certificate (which effectively revokes the license) if teens of a license agreement associated with the digital certificate are violated.