Licensing occurs when which description is accurate?

Licensing occurs when which description is accurate?

• 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 League Logos
• C. The Owner of an Intellectual Property Grants Its Use to a League in Exchange for a Fee
• D. A Company Pays an Athlete for Autographs

Answer: (C)

Licensing is when the owner of intellectual property grants permission to someone else to use that IP in exchange for payment, under defined terms. In this scenario, the owner grants the use of its IP to a league and collects a fee, which is exactly how a licensing arrangement works. The league gains the right to use the IP (like logos or trademarks) to produce and sell products or run promotions, while the owner retains ownership and can set terms such as where, for how long, and under what quality standards. The other descriptions don’t fit licensing. Reversing the roles—where the licensee would allow the licensor to use its IP—misstates who owns and authorizes the rights. A contract where a league pays a company to manufacture products using league logos describes a manufacturing or production agreement, not the licensing of IP rights itself. Paying an athlete for autographs is an autograph deal or endorsement, not a licensing of IP.

Licensing is when the owner of intellectual property grants permission to someone else to use that IP in exchange for payment, under defined terms. In this scenario, the owner grants the use of its IP to a league and collects a fee, which is exactly how a licensing arrangement works. The league gains the right to use the IP (like logos or trademarks) to produce and sell products or run promotions, while the owner retains ownership and can set terms such as where, for how long, and under what quality standards.

The other descriptions don’t fit licensing. Reversing the roles—where the licensee would allow the licensor to use its IP—misstates who owns and authorizes the rights. A contract where a league pays a company to manufacture products using league logos describes a manufacturing or production agreement, not the licensing of IP rights itself. Paying an athlete for autographs is an autograph deal or endorsement, not a licensing of IP.