A licensor is an individual or entity that grants permission to another party to use a particular intellectual property or asset under defined conditions. This arrangement allows the licensee to utilize the licensor's property while the licensor retains ownership rights and often receives compensation or royalties in return.
Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce, which are protected by law to incentivize creativity and innovation. The legal protection of IP grants creators exclusive rights to use, produce, and benefit from their creations for a certain period, balancing the interests of creators and the public.
An exclusive license grants a single entity the sole rights to use, produce, and sell a particular intellectual property, preventing the licensor from granting similar rights to others. This arrangement often involves higher fees and is used to ensure competitive advantage or market control for the licensee.
A non-exclusive license allows multiple parties to use, produce, or sell a product or intellectual property without granting any exclusive rights to a single licensee. This type of license is often used to maximize the dissemination and commercialization of the licensed material while retaining ownership rights with the licensor.
A licensee is an individual or entity granted permission to use, produce, or sell a product, service, or intellectual property owned by another party, under the terms of a licensing agreement. This arrangement typically involves the licensee paying a fee or royalty to the licensor, while ensuring compliance with the specified terms and conditions.