What is a written contract granting rights to license IP to a licensee?

What is a written contract granting rights to license IP to a licensee?

• A. Loan
• B. Leverage
• C. Licensing
• D. Local nationals

Answer: (C)

A written contract that grants rights to use intellectual property to another party is licensing. This license agreement sets out exactly what IP is being licensed, the rights being granted (whether the use is exclusive or non-exclusive, in which fields, and in which geographic areas), and the duration of the license. It also covers payment terms such as royalties, and practical obligations like quality control, reporting, and how infringement will be handled. The licensor retains ownership of the IP, while the licensee gains permission to use it under the agreed conditions. The other terms in the options don’t describe an arrangement to grant IP rights—one relates to borrowing money, another to a financial concept, and the last to people rather than a contract for IP usage.

A written contract that grants rights to use intellectual property to another party is licensing. This license agreement sets out exactly what IP is being licensed, the rights being granted (whether the use is exclusive or non-exclusive, in which fields, and in which geographic areas), and the duration of the license. It also covers payment terms such as royalties, and practical obligations like quality control, reporting, and how infringement will be handled. The licensor retains ownership of the IP, while the licensee gains permission to use it under the agreed conditions. The other terms in the options don’t describe an arrangement to grant IP rights—one relates to borrowing money, another to a financial concept, and the last to people rather than a contract for IP usage.