licensor

A licensor is a person or organization that owns intellectual property rights and grants others permission to use those rights under a license agreement. The licensor retains ownership of the IP and controls the scope of the license, including where, how, and for how long the rights may be exercised. Licensors commonly license patents, copyrights, trademarks, and trade secrets, either alone or in combination.

License terms typically specify the grant (exclusive, non-exclusive, or sole), the field of use, territory, duration, and any limits on sublicensing or distribution. They may also set royalty or upfront payment structures, minimums, quality-control standards, reporting, and audit rights. Additional provisions cover infringement handling, warranties, indemnities, termination, and post-termination obligations, such as cessation of use and destruction of materials.

An exclusive license gives the licensee sole rights within a defined scope, while non-exclusive licenses allow the licensor to grant the same rights to others. A sole license typically permits the licensor to use the IP and licensee as well, but excludes others. Ownership remains with the licensor in all cases.

Licensors have duties to maintain the IP, defend against infringement, and monitor licensee compliance to protect brand value and IP integrity. They may also require quality-control measures to ensure licensed products meet standards.

Licensing relationships are common in software, media, pharmaceuticals, and manufacturing, enabling liquidity for IP owners and broader access for licensees.