What is licensing?
Licensing is a contractual arrangement in which the owner of an intellectual property right or other asset (the licensor) grants permission to another party (the licensee) to use that right or asset on defined terms — including scope, territory, exclusivity, term, royalty structure and quality controls — in exchange for payment.
Common licensing arrangements include software licences (SaaS, on-premise, OSS), trademark licences (franchising, brand extension), patent licences, content licences and technology transfer. Drafting must address infringement indemnities, audit rights and termination triggers.