A License Agreement is a legal contract in which the owner of a physical or intangible object provides use rights to another person or corporation under certain circumstances. Often, use rights are offered in return for a royalty or licensing fee. The licensor in a Licensing Agreement is the owner of the physical or intangible property being licensed, and the licensee is the person or corporation given permission to use the product.
If you have ever bought computer software for use on your home or business computer, you are a party to what is known as an End User License Agreement (EULA). You do not own any computer software acquired in accordance with the terms of the agreement. You are a licensee, and you are paying for the right to use it in accordance with the terms of the agreement. Some EULAs restrict use to a single computer, while others permit company-wide or limitless use.
It is critical to utilize papers that explicitly safeguard your rights when generating Licensing Agreement forms, whether you are the licensee or the licensor. The ideal way to create a licensing agreement is to base it on typical corporate legal documents that have been reviewed by a skilled legal expert.
