License
A license is a promise not to sue.
A license (American English) or licence (Commonwealth English) is an official permission or permit to do, use, or own something, as well as the document of that permission or permit. It is granted by a party (licensor) to another party (licensee) as an element of an agreement between those parties, and can be issued by a government or a private party. The simplest definition is 'a promise not to sue,' because a license usually permits an activity that would otherwise be illegal or a violation of the licensor's rights.
- field
- Law, Intellectual Property, Real Property
- known_for
- Granting permission to use intellectual property or land, with a shorthand definition of 'a promise not to sue'
Lore & Background
Mass distributed software is used under an end-user license agreement (EULA), typically associated with a unique code. Patent licensing allows a patent owner to authorize a licensee to make, use, sell, or import a patented product, often for a specific term and territory, with royalty payments. Trademark licensing permits a licensee to distribute products under a trademark without fear of infringement claims.
Reader's Guide
The concept of a license is fundamental to modern commerce, law, and technology. It enables the lawful use of intellectual property, such as software, patents, and trademarks, which underpins industries like broadcasting, franchising, and technology transfer. The shorthand definition—'a promise not to sue'—captures its core function: allowing activities that would otherwise be illegal or infringing. Licenses can be revocable or irrevocable, exclusive or non-exclusive, and are subject to conditions like term, territory, and field of use. In real property, licenses distinguish from leases by being revocable and non-assignable, and they do not confer possessory interest. The flexibility of licensing models, including lump sum or running royalties, allows licensors to profit while granting access. However, the enforceability of end-user license agreements is sometimes questioned. Overall, licensing balances the rights of creators and owners with the needs of users and the public, making it a cornerstone of legal and economic systems.
Did You Know?
- A license does not require consideration; it can be created with or without it.
- A license that is coupled with an interest is not revocable by the licensor without exposure to liability.
- In the event of a sale of the property, a license is terminated and cannot be enforced against new owners.
- Under a typical end-user license agreement, the user may install the software on a limited number of computers.
Frequently Asked Questions
What is a License in civil law?
A license is an official permission granted by one party (the licensor) to another (the licensee) to do, use, or own something that would otherwise infringe on the licensor's rights. It can be issued by a government authority or by a private individual as part of a broader agreement.
Why do people describe a License as 'a promise not to sue'?
Because a license typically authorizes an activity that would otherwise be illegal or a violation of the licensor's rights. The licensor essentially commits to refraining from bringing a legal claim against the licensee for that specific use.
Which legal fields rely most heavily on the License concept?
Intellectual property law and real property law are the two primary areas where licenses appear. They govern permissions to use creative works, patents, or another party's land without transferring full ownership.
How does a License differ from an outright transfer of rights?
A license grants permission to use or do something while the underlying right remains with the licensor. It functions as one element within a larger agreement between the two parties rather than a complete handover of ownership.
Who has the authority to issue a License?
Both governmental bodies and private parties can grant licenses, depending on the context. The licensor must hold the underlying right or regulatory power over the specific activity being permitted.
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