License

The term licence originates from Latin (licere=allow,permit) and signifies the issue of a permit, without which there would be no right of distribution or use of a certain immaterial objects such as a right originating from the copyright, a picture or a software.

Licenses can have several specifications.

Examples for subjects of licence contracts are brands, patents, design patents and utility model (commercial protection rights).

Their use can for example include a time limit so that a new licence fee would be due after the expiry date. Licenses can of course also be limited to a person; as a rule the personal license is a simple license, which means that the licensee does not purchase any exclusive license rights but acquires them as hundreds, thousands or even millions of other users. In contrast it is of course also possible to hand out or obtain an exclusive licence. This can be very interesting for the sales and distribution in case it is intended to promote or sell a product or service via just one strong partner outside the borders of the country. As the example mentioned before makes quite clear, it is also possible to spatially limit the validity of a licence.

In the book trade licence sales play a differently important role in certain language areas, depending on the individual publishing policy but they are also subject to the grant of a license.

Also state-run or public bodies (e.g. regional media authorities or special government associations) can grant licences, e.g. for pilots i.e. flight licences, radio and driving licences, licences for the broadcasting of radio and/or TV-broadcasts or currently also the operation of mobile radio facilities.

Besides the licence for sales and distribution of a product a licence can also be granted for a production of a product.

When a license is purchased a unique licence fee is due and in case of a rental repeated licence fees have to be charged. These fees can be set off against tax by the companies.

Suggested reading:

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