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In this lesson, Rainey from Finance Strategist discusses licensing agreements, which are contracts between two parties allowing temporary use of property in exchange for a licensing fee. These agreements transfer ownership rights from the licensor (the property owner) to the licensee (the user). Licensing is commonly applied to intellectual property like patents, trademarks, copyrights, movies, music, and artwork. Examples include a movie studio licensing character copyrights to a toy manufacturer for action figures and a pharmaceutical company licensing a drug patent to a third-party manufacturer to cut costs. Additionally, in real estate, revocable licensing agreements can be used in place of leases, offering limited rights to the renter as the licensor can terminate the agreement.
