Licensing Fees

Licensing fees are payments made to use someone else's intellectual property, such as patents, trademarks, or copyrighted materials. For example, when a company wants to manufacture a product that incorporates a patented technology, it must pay the patent holder a fee for the right to do so. These fees allow the original creator to earn income from their innovation while providing others the opportunity to use it legally. Licensing agreements also specify the terms of use, including duration and territory, ensuring both parties understand their rights and obligations.