A license is a legal authorization granted by a rights holder (the licensor) to another party (the licensee) to use an intellectual property right — such as a patent, trademark, copyright, know-how, or trade secret — under defined contractual terms. This mechanism is widely used across many sectors, including technology, music, publishing, and film.
The main purpose of a license is to allow the licensee to exploit a protected creation (software, invention, trademark, literary or musical work) without infringing the licensor’s rights. In return, the licensee generally pays a royalty — fixed, proportional to turnover, or a mixed rate — as remuneration for this authorization.
Licenses can take several forms:
- Exclusive: the licensee has the sole right to use, and the licensor refrains from using or granting the right to third parties during the term of the contract.
- Non-exclusive: several licensees may simultaneously benefit from the same right to use.
Sublicense: the licensee is authorized to grant certain exploitation rights to a third party, in accordance with the terms of the initial contract.
Licenses are a strategic tool for sharing and promoting technologies and knowledge. They encourage collaboration between companies while preserving the legal protection of intangible assets. For creators, they allow control over the distribution and use of their works by various economic players and the public.
Licenses are therefore an essential contractual agreement in the innovation economy: they facilitate the circulation of ideas and knowledge while guaranteeing the rights and interests of intellectual property rights holders.