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In this lesson, Rainey from Finance Strategist explains licensing agreements, which are contracts allowing the temporary use of property in exchange for a licensing fee. These agreements transfer ownership rights from the licensor (property owner) to the licensee (user). Commonly used for intellectual property, examples include a movie studio licensing characters to a toy manufacturer for action figures and a pharmaceutical company licensing a drug patent to reduce costs. In real estate, revocable licensing agreements may replace leases, granting limited rights to the renter, as the licensor can evict the licensee.
