Question 1

What's the difference between exclusive and non-exclusive licenses?

Accepted Answer

An exclusive license means only you can use the IP — the licensor can't grant the same rights to anyone else (and in some cases, can't use it themselves). A non-exclusive license means others can also get the same rights. Exclusive licenses cost more because they give you a competitive advantage.

Question 2

Can a license be revoked?

Accepted Answer

It depends on the license terms. Irrevocable licenses can't be taken back (unless you breach the agreement). Revocable licenses can be terminated by the licensor, usually with notice. Perpetual licenses last forever; term licenses expire. Check whether your license is perpetual and irrevocable — that's the gold standard for the licensee.

Question 3

What happens when a software license expires?

Accepted Answer

You lose the right to use the software. Depending on the terms, you may need to delete all copies, return documentation, and certify in writing that you've stopped using it. Some licenses convert to read-only access or limited functionality after expiration. Always know your post-termination obligations.

Question 4

Can you sublicense to someone else?

Accepted Answer

Only if the license explicitly allows sublicensing. Most licenses prohibit it by default. If you need to give access to contractors, partners, or clients, make sure your license includes sublicensing rights — or you're sharing the IP without permission, which is infringement.

Question 5

What's a royalty-free license?

Accepted Answer

A royalty-free license means you pay once (or sometimes nothing) and don't owe per-use fees. Stock photo sites typically sell royalty-free licenses — one payment, unlimited use within the terms. The alternative is a rights-managed license where you pay based on usage (print run, distribution, duration). Royalty-free is simpler but often more restrictive.

License

Definition

In Practice

Common in these contract types

Frequently asked questions about license

Create a contract with proper license clauses