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Licences

What are licences? Definition and meaning

The term licence originates from Latin and means something like “it is permitted”. In a commercial sense, a licensor grants through a licence a right of use for, say, a patent or trademark right, an invention or a utility model (= protected rights). This is generally done in exchange for a fee that the licensee must pay the licensor as consideration for the right of use. By paying the licence fees, the licensee then receives permission in the form of a licence agreement to use the acquired protected right in accordance with that agreement.

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Frequently asked questions

What is a licence?
A licence is a right of use that a licensor grants for a protected right such as a patent, a trademark, an invention or a utility model. It gives the licensee permission to use the protected right in accordance with the licence agreement.
What is a licence fee?
The licence fee is the payment that the licensee makes to the licensor as consideration for the right of use granted. Only once this payment has been made does the licensee receive the contractually agreed permission to use the protected right.
How are software licences used?
Software is provided through licences too: for a licence fee, the licensee acquires the right to use it in accordance with the licence agreement. To see which functions projectfacts offers, take a look at the overview of functions.