Define: License

In legal terms, a “licence” refers to a formal permission or authorisation granted by one party (the licensor) to another party (the licencee) to engage in certain activities that would otherwise be restricted or prohibited. Licenses can take various forms and can be granted for different purposes, such as intellectual property licences, business licences, or driver’s licences.

In intellectual property law, a licence grants permission to use copyrighted material, patented inventions, or trademarks under specific terms and conditions. For example, a software licence allows a user to use a particular software program, while a music licence permits the use of copyrighted music in specific contexts, such as in a film or advertisement.

Business licences are permits issued by governmental authorities that authorize individuals or entities to conduct specific types of business activities within a particular jurisdiction. These licences ensure compliance with local regulations and often require payment of fees or adherence to certain standards.

Driver’s licences are legal documents issued by governmental authorities that permit individuals to operate motor vehicles on public roads. These licences typically require passing examinations and meeting specific criteria, such as age and residency requirements.

Overall, licences play a crucial role in regulating various activities and ensuring compliance with legal requirements and standards. Violating the terms of a licence can result in legal consequences, such as termination of the licence or legal action for infringement.

The verb licence, or grant licence, means to give permission. The noun licence (or licence in British spelling) is the document demonstrating that permission. A licence may be granted by a party (“licensor”) to another party (“licencee”) as an element of an agreement between those parties. A shorthand definition of a licence is “a promise (by the licensor) not to sue (the licencee).”

Occupational

Obtaining a licence is required for a number of occupations and professions where maintenance of standards is required to protect public safety; for example, physicians, psychologists, and electricians are often licenced by the government or professional societies.

In the United States, this is usually a state licence, issued and regulated by a state agency.

In addition to individuals, some types of businesses are required to be licenced. Thus, bars may need to possess a licence to sell alcohol. Personnel agencies, clinics, radio broadcasters, TV stations, and restaurants are just some of the businesses that are often required to have licences.

Intellectual Property

A licensor may grant a licence under “intellectual property” to do something (such as copy software or use a patented invention) without fear of a claim of intellectual property infringement brought by the licensor.

A licence under intellectual property commonly has several component parts, including a term, territory, and renewal, as well as other limitations deemed vital to the licensor.

Term: many licences are valid for a particular length of time. This protects the licensor should the value of the licence increase or market conditions change.

Territory: A licence may stipulate what territory the rights pertain to. For example, a licence with a territory limited to “North America” (United States/Canada) would not permit a licencee any protection for actions in Japan.

Mass Licencing Of Software

Mass-distributed software is used by individuals on personal computers under a licence from the developer of that software. Such a licence is typically included in a more extensive end-user licence agreement (EULA) entered into upon the installation of that software on a computer.

Under a typical end-user licence agreement, the user may install the software on a limited number of computers.

The enforceability of end-user licence agreements is sometimes questioned.

Trademark And Brand Licencing

A licensor may grant permission to a licencee to distribute products under a trademark. With such a licence, the licencee may use the trademark without fear of a claim of trademark infringement by the licensor.

Artwork And Character Licencing

A licensor may grant permission to a licencee to copy and distribute copyrighted works such as “art” (e.g., Thomas Kincaid’s painting “Dawn in Los Gatos”) and characters (e.g., Mickey Mouse). With such a licence, a licencee need not fear a claim of copyright infringement brought by the licensor.

Academia

A licence is an academic degree. Originally, in order to teach at a university, one needed this degree, which, according to its title, gave the bearer a licence to teach. The name survived despite the fact that nowadays, a doctorate is typically needed in order to teach at a university. A person who holds a licence is called a licentiate.

In Sweden and some European universities, it is approximately equivalent to an MPhil or MRes. In those countries, a licence is a middle-level degree between a master’s degree and a doctorate, taken by doctoral candidates, and is a popular choice in those countries where a “true” PhD would take five or more years to achieve.

In other countries, i.e. Poland or France, a licence is achieved before the master’s degree (it takes 3 years of studies to become licentiate and 2 additional years to become Master). In Switzerland, a licence is a 4-year degree, then there is a DEA degree, which is equivalent to the Master’s degree. In Portugal, before the Bologna process, students would become licentiates after 5 years of studies (4 years in particular cases like Marketing, Management, etc.) and 6 years for medicine. However, since the adoption of Bologna Process engineering degrees in Portugal, they have changed from a 5-year licence to a 3-year licence, followed by 2 years for the MSc. (Not having the MSc doesn’t confer accreditation by the Ordem dos Engenheiros.)

Vehicles And Other Skill Licences

In the United States, licences are required to operate most vehicles. Thus, there are specific regulations for Driver’s licences, aeroplane pilot licences, and boating licences.

There are also special licences for engaging in various state-regulated activities. These include hunting licences and fishing licences.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 10th April 2024.