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In this episode of the Bent Right show, Andrew Krause discusses the fundamentals of licensing contracts, distinguishing them from patents. He explains that while patents protect inventions, licensing agreements are contracts with companies that require them to pay royalties for selling a product. Krause emphasizes the importance of understanding licensing agreements and reveals that many companies may not prioritize patents, surprising a significant number of students. The focus is on the essentials of what a licensing agreement is and why it's necessary for inventors and creators.