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In this YouTube video tutorial, Andrew Krause, co-founder of InventRight, discusses licensing contracts. He distinguishes between patents and licensing agreements, emphasizing that a patent protects an idea while a licensing agreement involves a deal with a company to pay royalties for selling a product. Krause delves into the importance of having a licensing agreement, highlighting that some companies may not be interested in patents and are willing to pay royalties without them. It is essential to understand the basics of licensing agreements to avoid any surprises during the licensing process.