Licensor vs. Licensee: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
A Licensor grants rights or permissions through a license, while a Licensee is the recipient of those rights or permissions.
Key Differences
The Licensor is an individual or entity that owns certain rights and grants permission to another party. The Licensee is the party that receives and uses those rights under specific terms.
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Nov 29, 2023
Licensors have the authority to set terms and conditions for the use of their property. Licensees agree to abide by these terms to utilize the licensed property.
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The Licensor retains ownership of the property being licensed. The Licensee, meanwhile, gains access to the property but does not own it.
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Licensors can revoke the license if the Licensee violates terms. Licensees must comply with the Licensor's conditions to maintain their rights.
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The Licensor benefits from granting licenses, often financially. The Licensee benefits from receiving the right to use the Licensor’s property, like intellectual property.
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Comparison Chart
Ownership
Retains ownership of the property being licensed
Does not gain ownership, only usage rights
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Authority
Sets terms and conditions of the license
Agrees to and must abide by these terms
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Benefit
Often financial gain from licensing
Gains access to use the licensed property
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Responsibility
Maintaining ownership rights
Using the property within agreed-upon terms
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Licensor and Licensee Definitions
Licensor
Owner of the property being licensed.
The artist, as the licensor, licensed her artwork for reproductions.
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Licensee
An entity that receives rights through a license.
The small business became a licensee to use the branded software.
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Licensor
Source of permission for using rights.
The music label, as the licensor, granted permission for the song's use in a movie.
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Licensee
Party agreeing to licensor's conditions.
The restaurant, a licensee, agreed to the franchisor's terms for operation.
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Licensor
An entity that grants rights through a license.
The software company, as the licensor, allowed others to use its program.
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Licensee
User of licensed property under specific terms.
The filmmaker, as a licensee, used the song under the terms of the license.
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Licensor
Official or legal permission to engage in a regulated activity
"He believed that the subcommittee gave him license to interrogate anyone about any possible links to communism" (Donald A. Ritchie).
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Licensee
Recipient of usage rights without ownership.
The manufacturing company, as a licensee, produced goods using the patented technology.
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Licensor
A document, card, plate, or tag that is issued as proof of official or legal permission
A driver's license.
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Licensor
A contract allowing someone to use a proprietary product or service
Has a site license for that software.
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Licensor
Freedom of action or permission to act
"Doctors labeled many of the organs of the immune system 'functionless' ... giving surgeons license to remove them with abandon" (Andrew Weil).
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Licensor
Lack of due restraint; excessive freedom
"It is important to preserve freedom only for people who are willing to practice self-denial, for otherwise freedom degenerates into license and irresponsibility" (Milton Friedman).
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Licensor
Heedlessness for the precepts of proper behavior, especially with regard to sex
"noir stories of the consequences of sexual license" (Foster Hirsch).
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Licensee
Entity bound by the terms of a license agreement.
The online retailer, a licensee, sold products under the brand's licensing agreement.
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Licensor
An excuse or justification to do something wrong
People who see low-fat labels as a license to eat larger amounts.
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Licensor
To give or yield permission to or for
"Deep down I wondered what licensed me to speak" (Jan Clausen).
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Licensor
One who sets terms for property usage.
The publisher, the licensor, set specific terms for the book's distribution.
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Nov 29, 2023
Licensor
Party responsible for licensing agreements.
The university, acting as a licensor, allowed its patented research to be used commercially.
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Repeatedly Asked Queries
Does a Licensee own the licensed property?
No, the Licensee gains usage rights, but ownership remains with the Licensor.
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What does a Licensor do?
A Licensor grants rights or permissions through a license.
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Can anyone be a Licensor?
Only if they have legal rights or ownership of the property to license.
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What are the responsibilities of a Licensor?
A Licensor is responsible for setting and enforcing the terms of the license.
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Can a Licensee modify the licensed property?
Only if the license terms permit modifications.
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What is the role of a Licensee?
A Licensee is the recipient of those rights or permissions.
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Can a Licensee sublicense the rights?
Only if the original license agreement permits sublicensing.
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Can a Licensor revoke a license?
Yes, if the Licensee violates the terms of the license.
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How does a Licensor benefit from licensing?
Often through financial compensation or broader distribution of their property.
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Is a Licensee's use of property limited?
Yes, by the terms and conditions set by the Licensor.
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Is a licensing agreement legally binding?
Yes, it is a legal contract between the Licensor and the Licensee.
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What types of property can be licensed?
Intellectual property, real estate, brands, and more.
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How are disputes between Licensors and Licensees resolved?
Through legal means, arbitration, or as specified in the license agreement.
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Can a Licensor inspect how their property is used?
Yes, if such terms are included in the license agreement.
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Are Licensees always individuals?
No, they can be individuals, companies, or other entities.
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Can a Licensee sell the licensed property?
Typically no, as the Licensee does not own the property.
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Are there standard licensing agreements?
There are common formats, but details vary depending on the property and parties involved.
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Can a Licensee terminate the license?
This depends on the terms of the agreement and may require specific conditions.
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Do Licensors provide support to Licensees?
This varies and depends on the terms of the license agreement.
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How long does a license last?
The duration is set in the license agreement and can vary.
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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