If your end product including the item is going to be free to the end user then a Regular License is what you need. An Extended License is required if the end user must pay to use the end product.

Regular Extended
Number of end products 1 1
Use in a single end product Yes Yes
Use in a free end product
(more than one end user allowed)
Yes Yes
Use in an end product that's sold No Yes
On-demand products/services
(e.g. “made to order” or “create your own” apps and sites)
One license per each
customized end product
Use in stock items/templates No No