Licensor

A licensor is an individual or entity that grants a license to another party (the licensee) to use its intellectual property, such as patents, trademarks, copyrights, or trade secrets. This license allows the licensee to manufacture, sell, or otherwise exploit the intellectual property for a specified period, territory, and under defined conditions, typically in exchange for royalties or other forms of compensation. The licensor retains ownership of the intellectual property throughout the licensing agreement, while the licensee gains the temporary right to use it.

Licensor meaning with examples

• The software company, acting as the licensor, provided the gaming studio with a license to use their proprietary game engine, allowing them to develop and release their anticipated title. The contract stipulated specific use terms and royalty payments based on game sales, benefitting both parties involved in the agreement.
• As the original creator, the author acted as the licensor of their novel, granting a publishing house a license to print and distribute the book worldwide. They negotiated terms regarding copyright protection, print runs, and royalty percentages, which ensured they would be adequately compensated for their creative work.
• The university, as the licensor, granted a pharmaceutical company a license to develop and market a new drug based on its patented research. The licensing agreement allowed the company to conduct clinical trials and eventually commercialize the treatment, while providing the university with royalties.
• The musician was the licensor of his hit song, licensing it to several different companies for use in advertisements. The deals provided him with a considerable revenue stream by allowing use of his popular music in commercial promotions. This helped promote his brand to different audiences.
• The fashion brand acted as the licensor of its iconic logo to a clothing manufacturer. In exchange for royalties, the manufacturer could use the logo on a range of apparel, expanding the brand's market reach. The licensor controlled quality and brand identity through strict licensing terms.