What is a Licence?

• A. A franchise agreement
• B. A joint venture
• C. A contract to provide professional services
• D. Granting permission to another company to manufacture/sell a patented product (in return for a fee) (Correct)

Answer: (D)

Licensing means giving someone else permission to use your intellectual property rights, such as a patent, in exchange for fees or royalties, while you keep ownership of those rights. So, allowing another company to manufacture or sell a patented product under your patent—and charging a fee for that permission—fits the idea of a license. This can be exclusive or non-exclusive, and it defines things like geographic territory and duration. It’s different from a franchise, which involves using a full business format and brand with ongoing support; from a joint venture, which creates a new jointly owned business; and from a simple contract to provide professional services, which is about delivering services rather than using someone’s IP rights.