Licensing occurs when:

Licensing occurs when:

• A. A licensee allows a licensor to use its intellectual property for a fee.
• B. A professional league pays a company to manufacture product using the league logos.
• C. The owner of an intellectual property grants its use to a third party in exchange for a fee.
• D. A company pays an athlete for autographs.

Answer: (C)

Licensing is the contractual permission to use someone else’s intellectual property, granted by the owner to another party in exchange for payment. In sports marketing, this means a team or league (the IP owner) allows a manufacturer or retailer (the licensee) to use logos, trademarks, or player likenesses to create and sell branded products, with royalties or fees paid back to the IP owner. This arrangement keeps the brand in control while enabling product availability across markets. The best description is that the owner of the IP grants its use to a third party in exchange for a fee. It captures the core idea: permission to use IP in return for compensation, enabling licensed merchandise and other rights. The other options misstate who grants permission or the nature of the arrangement (endorsement/appearance rights rather than licensing).

Licensing is the contractual permission to use someone else’s intellectual property, granted by the owner to another party in exchange for payment. In sports marketing, this means a team or league (the IP owner) allows a manufacturer or retailer (the licensee) to use logos, trademarks, or player likenesses to create and sell branded products, with royalties or fees paid back to the IP owner. This arrangement keeps the brand in control while enabling product availability across markets.

The best description is that the owner of the IP grants its use to a third party in exchange for a fee. It captures the core idea: permission to use IP in return for compensation, enabling licensed merchandise and other rights. The other options misstate who grants permission or the nature of the arrangement (endorsement/appearance rights rather than licensing).