Contract Glossary
License
Definition
A license is permission to use someone else's stuff — software, brand, patent, design, content — under specific rules. You don't own it. You're borrowing it, and the license terms define exactly how.
In Practice
You license a stock photo for your website. The license says 'non-exclusive, web use only, single domain, up to 500,000 impressions.' If you print the photo on 10,000 brochures, you've violated the license terms. The photographer can demand takedown, additional licensing fees, or sue for infringement. Same photo, different license = different rights. Always read the fine print.
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Frequently asked questions about license
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.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.