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In this lesson, Rainey from Finance Strategist discusses licensing agreements, which are contracts that grant temporary use of a property in exchange for a licensing fee. These agreements transfer ownership rights from the licensor (property owner) to the licensee (user). Licensing agreements are commonly utilized for intellectual property, including patents, trademarks, copyrights, movies, music, and artwork. Examples include a movie studio licensing character copyrights to a toy manufacturer for action figures, or a pharmaceutical company licensing a drug patent to a third-party manufacturer in a more cost-effective location. In real estate, revocable licensing agreements may serve as alternatives to leases, offering limited rights to the licensee, as the licensor can terminate the agreement.
