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Rainey from Finance Strategist explains that licensing agreements are contracts between two parties for temporary use of a property in exchange for a fee. These agreements convey ownership rights from the licensor to the licensee, often used for intellectual property like patents, trademarks, and copyrights. Examples include movie studios licensing characters to toy manufacturers and pharmaceutical companies licensing drug patents to reduce costs. In real estate, revocable licensing agreements can be used instead of leases, granting limited rights to the licensee.
