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In this video tutorial, Andrew Krause, co-founder of Event Right, discusses the basics of licensing contracts. He clarifies the distinction between patents and licensing agreements, stating that a patent protects an invention while a licensing agreement outlines the terms under which a company can sell a product in exchange for royalties. Krause emphasizes the importance of licensing agreements and highlights that many companies may not prioritize patents in their agreements, surprising many of their students. The video aims to inform viewers about the essentials of licensing agreements and why they are necessary in the process of product commercialization.