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