Licensing Revenue Model

A licensing revenue model involves one party (the licensor) allowing another party (the licensee) to use their intellectual property—like patents, trademarks, or copyrights—in exchange for a fee or royalty. This agreement lets the licensee utilize the licensor's assets to create products or services, often expanding market reach. For example, a software company might license its technology to another firm, allowing them to build new applications while the original company earns revenue without directly selling products. This model is common in industries such as technology, entertainment, and pharmaceuticals.