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In this lesson, Rainey with Finance Strategist discusses licensing agreements, which are contracts allowing one party (the licensee) to temporarily use property owned by another party (the licensor) in exchange for a licensing fee. These agreements typically concern intellectual property such as patents, trademarks, copyrights, movies, music, and artwork. Examples include a movie studio licensing character copyrights to a toy manufacturer for action figures and a pharmaceutical company licensing a drug patent to a manufacturer in a lower-cost location. In real estate, revocable licensing agreements can substitute leases, granting limited rights to the licensee, as the licensor maintains the ability to revoke the license.
