What Is Licensing?

An arrangement under which a rights holder permits another party to use specified rights subject to agreed terms.

What Does Licensing Mean?

Licensing is how a rights holder allows someone else to use intellectual property or other rights without transferring ownership. The terms of use are defined in the licensing agreement.

Why It Matters

Licensing lets businesses earn value from their rights while keeping control. The scope, territory, duration and payment terms are all matters for the agreement.

Related Information

Related legal terms: Assignment, Copyright, Trademark

Related practice area: Intellectual Property Law →

Dealing With a Related Matter?

This explanation is a general starting point. If the term matters in a specific situation you are facing, a conversation about your facts can help you decide the right next step.

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This definition provides general information and does not constitute legal advice. Laws change, and their application depends on the facts of a matter. For advice on your specific situation, consult a qualified lawyer.