Ghanem Law Firm: Licensing
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.