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In this lesson, Rainey from Finance Strategist discusses licensing agreements, which are contracts allowing one party to temporarily use another party's property in exchange for a licensing fee. These agreements transfer ownership rights from the licensor (property owner) to the licensee (user). They are commonly used for intellectual property, including patents, trademarks, copyrights, movies, music, and artwork. 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 manufacturer in a lower-cost location. In real estate, revocable licensing agreements can be used instead of leases, offering limited rights to the licensee, as licensors can revoke these agreements.
