A license agreement is a contract between a licensor (who owns the intellectual property rights) and a licensee (who is authorized to use the intellectual property rights) in exchange for fee or royalty. There are a number of different types of license agreements, such as:

  •     Technology Licenses
  •     Trademark Licenses and Franchising Agreements, and
  •     Copyright Licenses

License agreements can take place in a variety of circumstances, such as in a technology transfer, during a merger or acquisition, or as part of a joint venture.

For an intellectual property owner, a well-planned licensing strategy is a key part of its intellectual property asset management. The licensor can expand its business and derive a steady stream of revenue through licensing.

For a licensee, a license provides a greater ability to manufacture, sell, import, export, distribute and market various goods or services.