A license does not give carte blanche to exploit the rights granted, whether in a public or private good. A licensee has obtained legal authorization from another party to conduct a certain type of business over which the other party has some control, retention, or authority. Licensee may pay directly for such authorization, called a license fee, or make payments based on the results of the commercial agreement, which are referred to as license revenues. An implied license can be a more ambiguous relationship because no explicit permission has been given by law. The classic example is the implicit permission of a firefighter to enter a burning building, even if the owner is not present to officially authorize the entrance. In business, this concept typically consists of a licensee interpreting communication with a licensor as an implied authorization to use an asset. In addition to paying the fees or revenues associated with granting a license, licensees are often required to manage the authorization granted responsibly. The hunter is expected to leave the property in the state in which he found it. The investment dealer is required to recommend appropriate investments to the client. It is forbidden for the operator of the liquor store to sell to underage or drunk customers.
Many variants of this relationship exist in the business world. Here are some common examples of licensing agreements. An important use of the licensee concerns the authorizations granted for access to real estate. Typically, a licensee of a property has received explicit permission from the owner to use land. The property in question is not open to the general public. [Important: Licensee may pay Licensor for approval or share revenues from activities resulting from authorization.] A government license is a mechanism for local governments to monitor and, in many cases, tax entrepreneurs. A liquor license is one such example. By granting the license, a city or county ensures compliance with local liquor regulations and receives an additional source of revenue specifically associated with the sale of alcohol. In the case of a trademark license, licensee is authorized to use the trademarks and logos of a licensor on its products.
B manufacturing, such as sportswear. A securities sales license is a similar type of permit granted nationwide – although it is not technically issued by the government, but by the Financial Industry Regulatory Authority (FINRA), a private regulator that enforces the rules for registered dealers and brokerage firms in the United States. A licensee is a company, organization or individual that has obtained legal authorization from another legal entity to participate in an activity. The authorization or license may be granted expressly or implicitly. A common example used in law schools is that of a hunter who has written permission to hunt on a landowner`s property. Without this authorization, the hunter would be considered an intruder and would be very little protected by law from the dangers that occur there during hunting. The hunter also could not be considered a guest, a legal term to describe a guest who has the opportunity to take legal action in response to damage suffered during the stay at the property. Under a franchise agreement, the franchisee is allowed to use the franchisor`s assets such as the supply chain, trademarks or any other intellectual property for a specified period of time. As a general rule, the franchisee is granted exclusive rights to these assets in a particular localized territory. .