Licensing

Licensing is the act of granting permission to use, exploit, or operate a resource or activity under defined terms. In intellectual property, a license permits another party to use patented inventions, copyrighted works, trademarks, or trade secrets without transferring ownership. Licensing arrangements are typically formalized in a written agreement that specifies the scope of use, territory, duration, and other conditions, and may be regulated by contract law and relevant IP statutes. Regulatory or government licensing, by contrast, authorizes individuals or businesses to perform certain activities, such as practicing a profession, manufacturing, or selling regulated goods.

In IP licensing, licensors grant rights to licensees in exchange for fees or royalties. Common terms include exclusivity (exclusive, non-exclusive, or sole), field or product use restrictions, sublicensing rights, term length, renewal, and termination. Payment models vary and may include upfront fees, recurring royalties, per-unit charges, or subscriptions. Quality control provisions, audit rights, and reporting requirements help maintain standards and prevent misuse.

Licensing covers software licenses (end-user licenses, open-source licenses), content licenses (images, music, film), and business or distribution licenses. Open and copyleft licenses, such as Creative Commons, allow reuse under specified conditions. Regulatory compliance, antitrust, export controls, and contract law apply to licensing, reminding parties of their obligations and risk of breach, including infringement or loss of rights upon termination. Licensing thereby enables monetization and distribution of creations and regulated activities while balancing control with access.