The verb license or grant license means to give permission. The noun license or license refers to that permission as well as to the document recording that permission. License is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment. It is the granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.

 

A license may be granted by a party ("licensor") to another party ("licensee") as an element of an agreement between those parties. A shorthand definition of a license is "an authorization (by the licensor) to use the licensed material (by the licensee)."It is an agreement through which a licensee leases the rights to a legally protected piece of intellectual property from a licensor – the entity which owns or represents the property — for use in conjunction with a product or service.

In particular, a license may be issued by authorities, to allow an activity that would otherwise be forbidden. It may require paying a fee and/or proving a capability.

 

The requirement may also serve to keep the authorities informed on a type of activity, and to give them the opportunity to set conditions and limitations.