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Key Takeaways. A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.
Generally, there are three types of licensing agreements: exclusive, sole, or non-exclusive. In an exclusive license, the licensee is only the party that can use the licensed intellectual property.
By Practical Law Intellectual Property & Technology. An agreement for the licensing of intellectual property (IP) by a parent, IP holding company, or other company to an affiliated company within the same corporate group.
A pure license doesn't ask for anything in return, it just gives you new rights. Those rights may be conditional, but the conditions are just things you have to do to get new rights. They're not conditions imposed on any existing rights you had. A contract is an agreement between two parties.
A master license is an agreement between a music user and the owner of a copyrighted sound recording that grants permission to use the sound recording.
A manufacturing license agreement (MLA) is an agreement between an inventor and a manufacturer, explains the University of Washington's Office of Research. The agreement allows a third party to produce and use the inventor's product for payment in royalties or a specific lump sum.
A licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor.
Comparing Product Licensing vs Manufacturing The company who licenses your product takes on the risky investments of engineering and manufacturing your product, all while paying you an advance for the idea. While you do receive only a portion of the profits for a successful product, you have minimal risk as an ideator.
A pure license doesn't ask for anything in return, it just gives you new rights. Those rights may be conditional, but the conditions are just things you have to do to get new rights. They're not conditions imposed on any existing rights you had. A contract is an agreement between two parties.