licensees
Definition
Licensees are people or businesses that have received official permission from someone else to use something that person owns, like a product, brand name, technology, or creative work. The owner of that thing grants this permission through a legal agreement called a license, usually in exchange for money or other benefits. Think of it as renting the right to use something rather than buying it outright.
Example
If you pay a fee to use a popular cartoon character on your t-shirts, your business becomes a licensee of the company that owns that character. The owner can set rules about how you use it and can take away your permission if you break those rules.
Watch Out
Always read your license agreement carefully because licensees typically have strict limits on what they can do with the thing they licensed, and violating those terms can result in lawsuits and having to pay significant damages.
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.