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Licensing agreements are contracts between two parties that allow temporary use of a property in exchange for a licensing fee. These agreements transfer ownership rights from the licensor (the owner) to the licensee (the user). Commonly applied to intellectual property such as patents, trademarks, copyrights, movies, music, and art, 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 to cut costs. In real estate, revocable licensing agreements can substitute leases, granting the licensee limited rights since the licensor can terminate the agreement.
