sublicense
Definition
A sublicense is permission that a licensee passes along to a third party, allowing that third party to use something the original licensee was already licensed to use. Think of it like a chain of permission where you get the right to use something and then turn around and grant that same right to someone else. The original owner of the intellectual property must typically agree to allow sublicensing before you can legally do it.
Example
Your business licenses a software platform and then wants to let your franchisees use that same software, so you grant each franchisee a sublicense to access it. You are now the sublicensor and your franchisees are the sublicensees.
Watch Out
If your original license agreement does not explicitly allow sublicensing, granting one could put you in breach of contract and expose your business to a lawsuit from the original rights holder.
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.