Licensing Explained In Business And Intellectual Property: Meaning, Structure, And Strategic Use
Licensing is a fundamental business and intellectual property (IP) term that enables one party to give another permission to use its resources according to certain terms. This can be anything from logos and patents to copyrights, technologies or even business processes. Rather than transfer ownership, licensing allows companies to monetise their assets while maintaining ownership. Today, licensing is common in a variety of sectors - technology, entertainment, manufacturing, franchising and more. It enables businesses to reach new markets, partner with others and generate revenue from their innovations without having to actively manage the business. What Is A Licensing Agreement And How It Works This right will come with a price and the licensor will charge a fee or royalty. The owner (licensor) of the asset still owns it, but gets compensated for letting others use it. So, it's a win-win-win (licensor, licensee and consumer) situation. Typically, a license fee (royalty) will be ...