E.8.1- A Licid is a type of creature that can become a creature enchantment, reside on other creatures for a while, and then revert back to being a creature. [Tempest, Page 7]
E.8.2- When a Licid becomes a creature enchantment, it loses all abilities and gains whatever ability is listed in the card text. It also stops being whatever kind of permanent it was and becomes a local creature enchantment (see Rule K.12.2). It retains all other characteristics (see Rule K.6) including name, color, and so on. [Tempest, Page 8] [WotC Rules Team 1997/12/18]
E.8.3- The Licid ability targets the creature it will be enchanting. If the target becomes illegal before the ability starts to resolve, then the ability is ignored and the Licid will remain unchanged. [Tempest, Page 9]
E.8.4- When a Licid changes form, any counters, effects, and damage on it remain on it until they would normally be removed (if ever). If the counters or effects make no sense when applied to the current card type, then they do not do anything. But if the Licid returns to being a of the proper card type, they may take effect again. [D'Angelo 1998/07/24] For example, a +1/+1 counter from Dwarven Weaponsmith would remain, the effect of Giant Growth will wear off at end of turn, and damage will be removed at end of turn.
E.8.Ruling.1- Generally, the cost of using a Licid's ability includes tapping it. This means that when it moves onto the creature, it will be a tapped local enchantment. The enchantment's ability will work normally, though, and the card will untap during your next untap step. [Tempest, Page 9]
E.8.Ruling.2- A Licid will not get summoning sickness (see Rule G.37) by enchanting an opponent's permanent. You are still controlling the Licid. [D'Angelo 1997/10/15]
E.8.Ruling.3- If a Licid is enchanting a creature that phases out, the Licid phases out with the creature, and when it phases back in it will phase in still as a local enchantment. [D'Angelo 2000/04/04]
E.8.Ruling.4- When in creature enchantment form, it can be moved onto another creature with an enchantment moving spell or ability (see Rule E.9). It stays as an enchantment. [WotC Rules Team 1998/02/01]
E.8.Ruling.5- If a Licid targets itself, it will see itself as a legal target at the beginning of resolution. It will then turn into an enchantment and try to enchant itself. Rule K.12.6 kicks in at this point and says this is illegal, so the Licid is placed into the graveyard. [Jordan 2002/01/11]
E.8.Ruling.6- If a Licid targets a creature that cannot be enchanted, it will still move through to resolution because the Licid's text does not require its target to be a legal thing to enchant. During resolution it will then turn into an enchantment and try to enchant its target. Since the target is illegal, the Licid is placed into the graveyard. [Jordan 2002/01/11]