Licensing Agreement Overview
A licensing agreement is a contract under which the owner of intellectual property (licensor) gives permission for the use of its IP to another person (licensee), within the limits set by the provisions of the agreement. Licensing agreements can provide increased revenue for businesses through controlled sharing of intellectual property. Business owners, for example, may wish to license the use of their trademarks, patents, trade secrets, etc. to customers and/or business partners. Licensing agreements are also relevant in other circumstances, for example, during a merger or acquisition, or in the course of negotiating a joint venture.