What is a licensee?

Jump to Section

Need help with a Licensing Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

A licensee is the party that receives a license. Licensees are granted limited rights or legal permission by a licensor in the form of a license. Licenses enable a person or company (licensee) to do something that would otherwise be legally prohibited – like using someone’s branding, selling their products, or using their songs.

The rights a license grants to a licensee are limited by the authority of the licensor. In other words, the licensee will only be able to do what the licensor has the authority to grant. For example, if a company wants to license the use of a copyrighted information, licensor will only be able to grant the use of the copyrighted information they own it.

A licensee can also be a company that receives a license from the licensor. The licensee must be sure to obtain all of the rights that it needs to operate its business. A licensee must also operate the business legally.

Some examples of licensees include individuals with a driver’s license, and individuals licensed to practice law or medicine. Licensees may enter into a contractual relationship with a licensor to receive a license. A licensee may not receive greater rights in a license than a licensor has the ability to bestow.

What Does Being a Licensee Mean?

In intellectual property law, a licensee is an entity that has limited rights or permissions to use a patent, trademark, or other intellectual property owned by the licensor. Intellectual property licensees and licensors usually enter into licensing agreements containing negotiated terms for use of the licensor’s property.

In exchange for the limited use of the intellectual property, often licensees agree to pay royalties to the licensor. An intellectual property license permits a licensee to use, make, and/or sell the licensed property.

For example, if a Company A wants to make a cell phone that has a feature which is patented by Apple, Company A will need to license the use of that feature from Apple, and typically pay some sort of royalties or fees to do so.

In tort law, a licensee is distinguished in the common law from invitees and trespassers, usually for the purpose of ascertaining the duty of care owed by a property owner to an individual on his land in premises liability. Generally, licensees are people who have received express or implied invitation to enter the owned property without a mutually beneficial commercial relationship to the owner.

Read here for more information relating what does it mean to be a licensee.

How Licensing Works

Licensing for Franchisees

When you buy a franchise, you automatically get a license to use the brand and operating methods of the business. A major benefit of having a franchise is that you get a license to use the marketing materials, brand name, business model and other aspects of the company to build your own independently owned business.

The franchise license is different than other types of licensed businesses. With a franchise, you’re given the freedom to duplicate the business model in your location. This license comes with stipulations that you will manage and operate the business under the franchisee’s rules as laid out in the franchise agreement .

If you license a business, you get the ability to sell a company’s products in your store. Buying the license to sell a franchise’s products will not grant you the rights to open the franchise itself. For example, the Disney Corporation sells franchises of the Disney Store, and it also sells the license to sell Disney products.

Here is an article to read more about how licensing works with franchisees.

Licensing for Brands

When a company believes there is a strong consumer acceptance for brand or products, it may choose to license its brand(s). Licensees expect that the license will provide them with sales growth. This sales growth may be in the form of growth within existing market or the opportunity to enter a new market.

The licensing contract forces the licensee to achieve certain sales targets and royalties; therefore, the goal of the licensee is to quickly meet their business objectives, thereby achieving their contract obligations. Royalties is the money paid to a licensor by the licensee for the right to use the licensed property.

Apart from benefits to licensors, licensees benefit as well. Licensees lease the rights to a brand for incorporation into their merchandise, but do not share ownership in it. Having access to major national and global brands, and the logos and trademarks associated with those brands, gives the licensee significant benefits.

When brand managers enter or extend into new product categories via licensing , they create an opportunity for a licensee to grow their company. Following is an example of the steps in the process for the licensed product:

  • Licensor chooses the product categories to be licensed
  • Licensor finds and negotiates a license with the best licensees
  • Licensees develop concepts, protypes and final production samples and submit for approval
  • Licensor approves licensed products for sale
  • Licensees sell licensed products to authorized retailers

Here is an article for more information relating to licensing brands.

Meet some lawyers on our platform

Jane C.

27 projects on CC
View Profile

Richard N.

31 projects on CC
View Profile

Forest H.

31 projects on CC
View Profile

Michael K.

8 projects on CC
View Profile

Licensing for Real Estate

The requirements for real estate licensing vary widely from state to state. Some states require a certain level of education, and/or a certain number of credit hours in real estate coursework, before you can take the licensing exam.

Eligibility Requirements

There is no national standard real estate licensing checklist. Each state sets its own requirements. You may have to meet residency restrictions, requirements for pre-licensing coursework, and a lot of other paperwork. You may have to complete various training programs, go through a background check, be fingerprinted, and show proof of employment with a sponsor or managing broker/brokerage.

Other eligibility requirements that differ from state to state include:

  • Education requirements
  • Hours of coursework minimums
  • On-the-job training requirements
  • Exam pass rates
  • Proof of employment with a sponsor or managing broker/brokerage
  • Errors and omissions insurance

Pre-Licensing Education

All states require some type of real estate pre-licensing education. Once you complete your coursework, you will have to pass a state administered exam in order to continue. Some states require you to have a certain number of hours of on-the-job training in addition to your pre-licensing coursework.

Read here for more information on how licensing works for real estate.

Operating License

Operating licenses means all licenses, franchises, permits, consents, approvals, registrations, certificates and authorizations of all Governmental Authorities necessary or advisable to the conduct of the businesses of any of the Company parties.

Read here for more information relating to operating licenses.

Difference Between Licensor and Licensee

The licensee is the party that receives a license, while the licensor is the party that grants the license. For instance, when a bar owner gets a liquor license from the state where he operates his business, the owner is the licensee and the government that issued the license is the licensor.

Understanding Licensing Law

A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.

Depending upon the situation, licensing laws will differ. Example, licensing laws for branding are different from licensing laws for Franchises. Though the laws may differ, the role of a licensee does not change.

Benefits of Licensing for a Licensee

Franchisees

A major benefit of having a franchise is that you get a license to use the marketing materials, brand name, business model and other aspects of the company to build your own independently owned business. With a franchise, you’re given the freedom to duplicate the business model in your location.

Read more about benefits of franchisee licensees here .

Brands

Licensees lease the rights to a brand for incorporation into their merchandise, but do not share ownership in it. Having access to major national and global brands, and the logos and trademarks associated with those brands, gives the licensee significant benefits.

Read here for more information relating to the benefits of licensees for brands.

Intellectual Property

Some advantages/benefits of licensing include:

  • Income without overhead
  • Potentially better marketing
  • Enter foreign markets more easily
  • Diffuse conflicts

Read here for more information relating to the benefits of licensees of intellectual property.

Get Help with Licensing

Do you need help with licensing?

Post a project in ContractsCounsel’s marketplace to get free bids from lawyers for the work. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

ContractsCounsel verified
Outside Counsel
26 years practicing
Free Consultation

I'm a business law generalist with over 24 years of experience, including as in-house General Counsel, as outside counsel through my own firm and as an attorney in an Am Law 100 law firm. My employers and clients uniformly appreciate my ability to (i) negotiate and close transactions quickly and effectively, and (ii) to make the complex simple. Among other things, I can efficiently assist you on entity formation, governance, and structure; HR issues; mergers and acquisitions; and the negotiation and drafting of all types of commercial contracts. I'm the proud recipient of multiple Martindale-Hubbell Client Distinction Awards given only to the top 5% of attorneys for quality of service.

ContractsCounsel verified
Business Attorney
14 years practicing
Free Consultation

Strategic thinking business minded Outside General Counsel here to help you with your company. I have been able to help guide business owners from startup through series A, B, & C funding and ultimately IPO's. Regardless of your plans I am here to help you succeed as you grow your business.

ContractsCounsel verified
Principal Attorney
17 years practicing
Free Consultation

Daliah Saper operates a cutting-edge internet and social media law practice that regularly leads local and national media outlets to solicit her commentary on emerging internet law issues involving cyberbullying, sexting, catfishing, revenge porn, anonymous online defamation, domain name and user-name squatting, privacy, and the latest business decisions made by social media platforms such as Facebook, Twitter and YouTube. As a litigator Daliah represents companies bringing or defending business and intellectual property disputes. (She has argued cases in a number of jurisdictions including taking a case all the way to the Illinois Supreme Court.) As a transactional lawyer she helps clients choose the right business entity, drafts contracts and licensing agreements, advises on sweepstakes and contest rules, and ensures website terms of use and privacy policies are compliant, and provides comprehensive trademark and copyright counseling. Since founding Saper Law Offices in 2005, Daliah has been named a 40 Under 40 by Law Bulletin Publishing Co., a top Media & Advertising attorney by Super Lawyers Magazine 14 years in a row, and has been repeatedly recognized as a leading media and entertainment lawyer by Chambers and Partners. For the past eleven years, she also has taught entertainment and social media law at Loyola University Chicago School of Law.

ContractsCounsel verified
Attorney
10 years practicing
Free Consultation

Mr. Mehdipour attended the University of California San Diego where he received his degree in political science. After graduating from UCSD, Mr. Mehdipour attended Southwestern University School of Law where he received his JD. Upon passing the bar, Mr. Mehdipour gained invaluable experience both in a law firm and business setting. Mr. Mehdipour uses his prior business and legal experiences to negotiate the most advantageous results for his clients.

ContractsCounsel verified
Attorney
14 years practicing
Free Consultation

Alen Aydinian is a versatile attorney with over a decade of experience working with business owners and real estate professionals. Client engagement is central to a successful attorney/client relationship. Alen personally manages all client relationships so that his clients can see how their interests are being served at every stage of the process.

ContractsCounsel verified
Founder, Victrix Legal LLC
1 year practicing
Free Consultation

I help small business owners build and protect their dreams. I always thought that I would just be a litigator. Then I joined an intellectual property clinic in law school. We were helping nonprofits and small businesses reach their goals. I fell in love with the work and decided to open my own firm so I could keep helping them. When I decided to start Victrix Legal, I decided that it would be a modern law firm designed to serve professionals. It would be different from every other law firm. In my experience, my law firms are designed to promote inefficiency and reactionary lawyering. Because in most firms, you make more money when you spend more time on a project. And you lose money if your client doesn't get sued. In my opinion, that's a built-in conflict of interest. My firm is different. I use flat fees for most basic projects to keep costs predictable for you and incentivize efficiency. I offer long-term advisory plans and legal audits to prevent issues from happening. I want my clients to see me as their business partner, not just the guy they call when they are in trouble. If any of that interests you, please reach out to me. I offer free consultations. Let's set aside some time and talk about what your legal needs are.

ContractsCounsel verified
Attorney
7 years practicing
Free Consultation

My clients know me as more than just an attorney. First and foremost, my background is much broader than that. Prior to attending the Valparaiso University School of Law, I earned a Master of Business Administration and ran a small business as a certified public accountant. Thanks to this experience, I possess unique insight which in turn allows me to better assist my clients with a wide range of business and tax matters today. In total, I have over 20 years of experience in financial management, tax law, and business consulting, and I’m proud to say that I’m utilizing the knowledge I’ve gained to assist the community of Round Rock in a variety of ways. In my current practice, I provide counsel to small to medium-sized businesses, nonprofit organizations, and everyday individuals. Though my primary areas of practice are estate planning, elder law, business consulting, and tax planning, I pride myself on assisting my clients in a comprehensive manner. Whenever I take on a new client, I make an effort to get to know them on a personal level. This, of course, begins with listening. It is important that I fully understand their vision so I can help them successfully translate it into a concrete plan of action that meets their goals and expectations. I appreciate the individual attributes of each client and know firsthand that thoughtful, creative, and customized planning can maximize both financial security and personal happiness. During my time as a certified public accountant, I cultivated an invaluable skill set. After all, while my legal education has given me a deep understanding of tax law, I would not be the tax attorney I am today without my background in accounting. Due to my far-reaching experience, I am competent in unraveling even the most complex tax mysteries and disputes. My CPA training benefits my estate planning practice, too. In the process of drafting comprehensive wills and trusts, I carefully account for every asset and plan for any tax burdens that may arise, often facilitating a much smoother inheritance for the heirs of my clients. Prior to becoming certified as a CPA, I made sure to establish a solid foundation in business both in and out of the classroom, and the acumen I’ve attained has served me well. Not only am I better able to run my own practice than I otherwise would be; I am able to help other small business owners fulfill their dreams, as well.

ContractsCounsel verified
Associate
5 years practicing
Free Consultation

Hello! I am a young attorney with four years' experience in real estate transactions, fund formation, and general corporate transactional work. I graduated in 2016 from the University of Texas - Austin and I am barred in Texas.

ContractsCounsel verified
Partner
5 years practicing
Free Consultation

I graduated from Harvard Law School and worked first for a federal judge and then a leading DC firm before starting a firm with a law school classmate. My practice focuses on company formations, early-stage investments, and mergers & acquisitions.

ContractsCounsel verified
Attorney
27 years practicing
Free Consultation

After 21 years as an in-house attorney for both large and small organizations, I formed Osensky Law in 2017 to bring my unique in-house counsel insights to entrepreneurs and smaller businesses. Unlike a traditional law firm, my focus is on delivering the kind of legal support a business wants and needs - not just technically correct legal advice, but strategic problem-solving with a focus on providing business value to clients. Since earning my law degree with honors from Tulane University Law School, I worked as in-house counsel for large multinational companies such as Georgia-Pacific and MCI, as well as smaller organizations including Georgia Technology Authority and Georgia Tech. This unique combination of experience allows me to bring together the best practices of all of them. I have led multi-disciplinary teams to achieve important business goals and have successfully negotiated many multi-million dollar deals. Now, as a business owner myself, I can relate to my clients and understand the challenges they face. I have an established reputation for providing practical advice and perspectives based on my legal training combined with over 20 years of practical hands-on experience as a business lawyer and leader. Today, with my firm Osensky Law, I advise clients on starting a new business, buying or selling a small business, and doing business with contracts.

ContractsCounsel verified
Attorney
10 years practicing
Free Consultation

G'day, my name is Michele! I work with startups, entrepreneurs and small/medium-sized businesses across the country in a wide array of industries. I help them with all of their ongoing, daily legal needs. This includes entity formation, M&A, contract drafting and review, employment, asset sale & acquisition, and business sales or shareholder exits. I'm half-Australian, half-Italian, and I've lived the last 20+ years of my life in America. I've lived all over the USA, completing high school in the deep south, graduating cum laude from Washington University in St. Louis, and then cum laude from Georgetown University Law Center. After law school I worked for the Los Angeles office of Latham & Watkins, LLP. After four intense and rewarding years there, I left to become General Counsel and VP of an incredible, industry-changing start-up called Urban Mining Company (UMC) that manufactures rare earth permanent magnets. I now work for Phocus Law where I help run our practice focused on entrepreneurs, startups, and SMEs. I love what I do, and I'd love to be of help! My focus is on providing stress-free, enjoyable, and high-quality legal service to all of my clients. Being a good lawyer isn't enough: the client experience should also be great. But work isn't everything, and I love my free time. I've been an avid traveler since my parents put me on a plane to Italy at 9-months old. I'm also a music nut, and am still looking for that perfect client that will engage me to explain why Dark Side Of The Moon is the greatest album of all time. Having grown up in a remote, and gorgeous corner of Australia, I feel a strong connection to nature, and love being in the elements.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call