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hi im rainey with finance strategist in this lesson were going to cover licensing agreements are contracts between two parties for a license or temporary use of a property in return for a licensing fee the contracts convey the rights of ownership from licensors the party that owns the property to the licensee the party that uses the property licensing agreements are most often used for intellectual property such as patents trademarks copyrights movies and music and artwork examples of licensing agreements include a movie studio might license copyrights for its characters from a popular movie to a toy manufacturer for making action figures that can be sold in the market a pharmaceutical company may license a drug patent to a third party manufacturer in a cheaper location to reduce its operational costs in real estate revocable licensing agreements are sometimes used in place of leases the renter or licensee has limited rights in such agreements because the licensor or landlord can ev