Exclusive License Agreement

An Exclusive License Agreement is a legal contract where the owner of a product, idea, or patent grants permission to another party to use, make, or sell it exclusively. This means only the licensed party can use or distribute the item within a certain scope and period, preventing others, including the owner, from doing so. In return, the licensee often pays royalties or fees. It allows the licensee to fully exploit the rights without competition from others, while still respecting the rights of the original owner, who retains ownership but limits use to the licensee during the agreement.