Yes, you still have to license your animal even if they are microchipped and they must wear that license when out in public. One of the benefits of licensing is that a neighbor or motorist who finds a lost animal can call the shelter to identify that animal's owner using the tag. A microchip can only be traced by a shelter, vet or animal control officer. Licensing reunites the animals with their owner, as well as saving the animal a trip to the shelter, where the owner would have to pay impound fees and a fine to redeem their pet.