Licensing Terminology
Licensing crosses over into almost every industry and it is important for every executive to understand the terms of licensing.
Licensing
The process of legally authorizing a third party the use of one’s Intellectual Property.
Intellectual Property
The name, likeness, logo, graphic, design, slogan, signature, character, or a combination of several of these elements in conjunction with a product, trademark or idea.
Term
The period of time the License Agreement shall be in effect.
License Agreement
The contract between Licensor and Licensee granting legal permission to use the Intellectual Property.
Licensor
Owner of the Intellectual Property.
Territory
The authorized countries covered by the License Agreement.
Royalty
The fee the Licensor assesses Licensee for the right to use the Intellectual Property.
Licensee
The firm and/or person that contracts with Licensor to use the Intellectual Property.