Licensing Agreement – Definition

Cite this article as:"Licensing Agreement – Definition," in The Business Professor, updated March 25, 2019, last accessed October 21, 2020,

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Licensing Agreement Definition

The term ‘license’ implies to allow by grant of authority. Therefore, a licensing agreement is a contract between two parties – namely the licensor and the licensee. It is normally a written contract where the property owner allows the licensee to use his or her property for a particular time frame. The licensor is usually given some money to serve as consideration by virtue of allowing his property to be accessed. Agreements regarding licensing are normally signed so as to secure those properties that are not tangible for instance patents, copyrights, trademarks to safeguard technological innovations, company names, logos amongst others. In the case of extreme licensing agreement, the licensor gives the licensee the leeway to manufacture and sell products, utilize their brand name or make use of the licensor’s patented technological know-how.

A Little More on What is a License Agreement

Business assets are the ones that are mostly licensed. All types of business assets can be licensed although licensing mostly entails intellectual property such as copyrights, patents, and trademarks. Digital assets such as trademarks and apps are usually licensed.

  •         Copyright licenses-entails the right to replicate the production and selling of the copyrighted commodity and derivative works. The right to do the work in public may also be licensed.
  •         Patent licenses- include the privilege to manufacture, sell, utilize, give out and sell overseas the patented commodity.
  •         Trademark licenses- this entails the privilege to utilize the trademark on particular objects in certain ways.
  •         Trade secret-this includes the privilege to make use of the trade secret in certain ways, a particular place and in specific procedures.

When coming up with the licensing contract, one should get a legal practitioner who is well conversant with licensing agreements. These consensuses tend to be complex and particular in nature. Utilizing internet sources is never the appropriate method to use when developing such agreements. A good number of advocates understand how to develop universal or general contract unfortunately, they may not have the knowledge on how to derive a licensing agreement. It may be advisable, to begin with an intellectual property attorney.

References for License Agreement

Academic Research on License Agreement

The New New-World: Virtual Property and the End User License Agreement, Kayser, J. J. (2006). Loy. LA Ent. L. Rev., 27, 59. The author in this article is concerned with how the license agreement can benefit the final person that puts the property into use. This is what happens after one party has allowed the other interested party to use his or her property.

Regulating Virtual Worlds Optimally: The Model End User License Agreement, Kunze, J. T. (2008). Nw. J. Tech. & Intell. Prop., 7, 102. This paper is investigating the regulatory measures and steps that can be used to monitor license agreement in the world. This is done with an objective of ensuring that both the licensor and the licensee are not only balanced but also an optimal level.

Adaptable Analysis on Storage Mode of Institutional Repositories Based on CC License Agreement, Du, P., & Kong, W. (2010, August). In Management and Service Science (MASS), 2010 International Conference on (pp. 1-4). IEEE. This article highlights to us the Creative Commons (CC) agreement in relation to the storage mode of institutional repositories. It goes ahead to inform us how the CC license agreement influence the avenues on modes of storage accreditation. The author goes ahead to give us examples of self-storage modes such as discipline storage, individual homepage blog, institutional repositories amongst others. In conclusion, the article goes ahead to talk about how users adapt to different kinds of storage modes.

Facilitating the commercialization of university innovation: The Carolina express license agreement, DeSimone, J. M., & Mitchell, L. (2010). This article is concerned with how economic growth could be enhanced in the United State of America after the serious recession of the 1930s, by inventing ways of creating more jobs and facilitating innovation in America. Some findings revealed that new firms that performed well created new jobs. The author proceeds to analyze a number of practices derived from various researches from universities like the University of North Carolina at Chapel Hill. It is revealed that firms are formed as a result of intellectual property from the university. Some of those talks and innovations led into the formation of the Carolina Express License agreement.

Roll of the Dice-Is One of the Parties to a Patent License Agreement Facing Chapter 7 or Chapter 11 Bankruptcy, Duffy, R. R., & Frank, G. A. (1988). J. Pat. & Trademark Off. Soc’y, 70, 728. This paper informs us on how there is no protection for the chapter 7 trustees or firm that had a false belief that they purchased all the debtors’ property in case the debtor did not reveal the patent licenses by including them on the bankruptcy timetable.

Developing an Internet and Wireless License Agreement for Motion Pictures and Television Programming, Frumes, H. M., Cleary, S., & Brennan, L. (2006). J. Int’l Media & Ent. L., 1, 283. The author here talks about how wireless license agreement has been introduced due to the availability of internet which has made it possible. The article goes ahead to highlight how the wireless mode has been achieved by the use of motion pictures and television programming.

On the License Agreement Templates for Digital Resources Abroad, Qiong, T. (2011). Information and Documentation Services, 32(5), 41-44. The paper focuses on how the templates of license agreement have been used overseas by various digital resources. Digital resources have led to the provision of relevant information and documentation services required during the license agreement between the licensor and the licensee.

Must we abide? Libraries should push the license agreement envelope, Hoek, D. J. (2011). American Libraries, 42, 21. This article is concerned with whether the parties to the license agreement must abide by the rules and follow them when engaging in such a contract. In addition to this, the author tells us on how libraries can contribute to the license agreement by pushing the contract to materialize.

The Analysis on Effect of the Arbitration Clause in Microsoft End-User License Agreement——From the Point of View of Chinese Consumers [J]. Qisheng, Q. S. H. (2007). International Law Review of Wuhan University, 2, 008. The author in this section talks about the impacts that the arbitration clause has on the final beneficiary of the license agreement. The author uses Chinese consumers as a case study in his work.

End-user license agreement-threat to information security: a real life experiment, Kaupas, Z., & Ceponis, J. (2017). In Proceedings of the IVUS International Conference on Information Technology (pp. 55-60). This author is concerned with threats to information security that may come up as a result of the final user of the license agreement. This may be so because some end users may not be in a position to guarantee the safety of information by being careless for instance sharing crucial details with other people not parties to the agreement.

Sunbeam Offers a Ray of Sunshine for the Licensee When a Licensor Rejects a Trademark License Agreement in Bankruptcy, Resnick, A. N. (2013). SMUL Rev., 66, 817. The author in this article talks about how the seller of a business in a license agreement may no longer want to be linked with the trademark. This seller or licensor, therefore, goes ahead to grant the buyer a long-term license so as to keep using the licensee’s trademark.

License Agreement of Technology Transfer for Technology Development in Indonesia, Mochtar, D. A. (2016). The Social Sciences, 11(24), 5958-5962. These paper discusses technology and how it has positively contributed to the economic benefits of a country by enhancing life standard, human dignity, and civilization. The author used Indonesia as a case study. The author informs us that every country got its own arrangement in the technology transfer which relies on how it has advanced technologically. Technology transfer should focus on the economic gain of a country to avoid cases whereby some countries are still not developed despite advancing technologically. The major concern should be on the license agreement on the technology transfer between the provider of technology and the final beneficiary.

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