Licensor vs. License — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Updated on April 25, 2024
Licensor is the party granting permission in a licensing agreement, whereas a license is the actual legal document that permits such an activity.
Difference Between Licensor and License
Table of Contents
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Key Differences
A licensor is an individual or legal entity that holds specific rights and grants permission to another party to use these rights. Conversely, a license is the legal tool or document that formalizes this permission, outlining the scope and terms of use.
Licensors are typically the original creators or rightful owners who have the authority to allow usage of their property. In contrast, a license serves as a record of the agreement, clearly specifying what is permitted and under what conditions.
The role of a licensor is active in that they decide the limitations and extent of the permissions granted. On the other hand, a license is passive and merely reflects the details agreed upon by both parties.
Licensors often receive compensation or royalties in exchange for granting a license. Whereas, the license itself does not generate revenue but is the basis through which the licensor can monetize their intellectual property or other assets.
While a licensor can negotiate, modify, or revoke licenses depending on compliance with the agreed terms, a license remains static unless formally amended or terminated by the licensor.
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Comparison Chart
Definition
Party granting permission to use rights
Legal document outlining usage permissions
Nature
Active, can negotiate terms
Passive, fixed terms
Function
Grants rights, can modify or revoke
Records agreement, specifies conditions
Benefits
Receives compensation/royalties
Enables legal use of rights
Relationship
Directly involved in granting permissions
Facilitates the relationship between parties
Compare with Definitions
Licensor
Initiator of a licensing contract.
The museum became a licensor when it provided its artifacts for the exhibition.
License
Certificate proving the grant of rights.
The artist displayed the license in their studio.
Licensor
Owner of property or intellectual rights that allows others to use them.
As the licensor, the author retained the rights to book adaptations.
License
Basis for legal operations under specific conditions.
The factory operated under a license that ensured safety compliance.
Licensor
A person or organization that grants rights to others.
The software company became the licensor when it allowed another company to distribute its products.
License
Legal permission for use or operation.
The license allowed the company to sell health products in the region.
Licensor
Party that controls the distribution of licensed material.
The licensor issued guidelines on how their music could be used in commercials.
License
Agreement specifying terms of use.
The license outlined strict guidelines for software usage.
Licensor
Entity responsible for setting terms in a licensing agreement.
The licensor specified that the logo could only appear on eco-friendly products.
License
A document granting permission to do something.
He obtained a license to start his food truck business.
Licensor
Official or legal permission to engage in a regulated activity
"He believed that the subcommittee gave him license to interrogate anyone about any possible links to communism" (Donald A. Ritchie).
License
A license (American English) or licence (British English) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit).A license is granted by a party to another party as an element of an agreement between those parties. In the case of a license issued by a government, the license is obtained by applying for it.
Licensor
A document, card, plate, or tag that is issued as proof of official or legal permission
A driver's license.
License
Official or legal permission to engage in a regulated activity
"He believed that the subcommittee gave him license to interrogate anyone about any possible links to communism" (Donald A. Ritchie).
Licensor
A contract allowing someone to use a proprietary product or service
Has a site license for that software.
License
A document, card, plate, or tag that is issued as proof of official or legal permission
A driver's license.
Licensor
Freedom of action or permission to act
"Doctors labeled many of the organs of the immune system 'functionless' ... giving surgeons license to remove them with abandon" (Andrew Weil).
License
A contract allowing someone to use a proprietary product or service
Has a site license for that software.
Licensor
Poetic license.
License
Freedom of action or permission to act
"Doctors labeled many of the organs of the immune system 'functionless' ... giving surgeons license to remove them with abandon" (Andrew Weil).
Licensor
Lack of due restraint; excessive freedom
"It is important to preserve freedom only for people who are willing to practice self-denial, for otherwise freedom degenerates into license and irresponsibility" (Milton Friedman).
License
Poetic license.
Licensor
An excuse or justification to do something wrong
People who see low-fat labels as a license to eat larger amounts.
License
Lack of due restraint; excessive freedom
"It is important to preserve freedom only for people who are willing to practice self-denial, for otherwise freedom degenerates into license and irresponsibility" (Milton Friedman).
Licensor
To give or yield permission to or for
"Deep down I wondered what licensed me to speak" (Jan Clausen).
License
An excuse or justification to do something wrong
People who see low-fat labels as a license to eat larger amounts.
Licensor
To grant a license to or for; authorize.
License
To give or yield permission to or for
"Deep down I wondered what licensed me to speak" (Jan Clausen).
Licensor
(legal) A party that grants a license to another.
License
To grant a license to or for; authorize.
License
A legal document giving official permission to do something; a permit.
License
The legal terms under which a person is allowed to use a product, especially software.
License
Freedom to deviate deliberately from normally applicable rules or practices (especially in behaviour or speech).
License
Excessive freedom; lack of due restraint.
License
To authorize officially.
I am licensed to practice law in this state.
License
(transitive) (applied to a piece of intellectual property)
License
To give formal authorization to use.
It was decided to license Wikipedia under the GFDL.
License
To acquire authorization to use, usually in exchange for compensation.
The filmmakers licensed several iconic 80's songs for the soundtrack.
License
(transitive) To give permission or freedom to; accept.
License
To permit (as grammatically correct).
No English adverbs have mandatory complements, and most don't even license optional ones.
License
The document granting such permission.
License
Excess of liberty; freedom abused, or used in contempt of law or decorum; disregard of law or propriety.
License they mean when they cry liberty.
License
That deviation from strict fact, form, or rule, in which an artist or writer indulges, assuming that it will be permitted for the sake of the advantage or effect gained; as, poetic license; grammatical license, etc.
License
To permit or authorize by license; to give license to; as, to license a man to preach.
License
A legal document giving official permission to do something
License
Freedom to deviate deliberately from normally applicable rules or practices (especially in behavior or speech)
License
Excessive freedom; lack of due restraint;
When liberty becomes license dictatorship is near
The intolerable license with which the newspapers break...the rules of decorum
License
The act of giving a formal (usually written) authorization
License
Authorize officially;
I am licensed to practice law in this state
Common Curiosities
How does a licensor generate income?
Licensors typically earn through royalties or fees paid for the rights granted in the license.
What does a license entail?
A license is a document that legally permits someone to use, operate, or do something specific under agreed conditions.
What is a licensor?
A licensor is a party that grants permissions to use certain rights or assets through a license.
What types of rights can a license cover?
A license can cover various types of rights, including but not limited to, intellectual property rights, commercial usage rights, or rights to operate under certain legal frameworks.
Can a license be revoked?
Yes, a license can be revoked if the licensee violates the terms set by the licensor.
Who can become a licensor?
Any individual or entity that holds legal rights to an asset or property can become a licensor by granting others permission to use it under specific terms.
Is a license always necessary for using someone else's property?
Yes, a license is necessary to legally use someone else's property or rights to avoid infringement and legal disputes.
How long can a license last?
The duration of a license depends on the terms agreed upon by the licensor and the licensee, ranging from temporary to several years, or even indefinitely until revoked.
What is the difference between a licensor and a licensee?
The licensor grants the rights, while the licensee is the recipient of those rights under the license.
Can a license be transferred to another party?
Whether a license can be transferred depends on the terms of the license agreement. Some licenses are strictly non-transferable, while others may allow transfer with the licensor's consent.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
