license
Definition
A license is official permission granted by one party to another to do something they otherwise would not have the legal right to do. In business, this can mean permission from the government to operate your business, or permission from another company to use their intellectual property like a logo, software, or invention.
Example
If you want to sell food from a truck, you need a government-issued business license, and if you want to use a popular cartoon character on your merchandise, you need a license from whoever owns that character.
Watch Out
Licenses almost always come with specific conditions and expiration dates, so operating without a current, valid license can result in fines or being forced to shut down.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.