Define Licensing Agreement in Simple Words


A licensing agreement is a legal agreement between two parties where one party grants permission to the other party to use their intellectual property (such as software, trademarks, or patents) in exchange for compensation.

The agreement outlines the terms and conditions of the use, such as how long the license will last, how much money will be paid, and what restrictions are in place.

Both parties must agree to the terms, and the agreement must be signed before the licensee can use the licensed intellectual property.

In essence, a licensing agreement is a way for the owner of intellectual property to make money from others using their property, while still maintaining control over its use and protecting their rights.