A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.
Licensing essentially involves an arrangement under which an organisation (the licensor) grants another organisation (the licensee) the right to manufacture goods, use patents, use processes, or exploit trade marks within a defined market.
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