1. (strategic marketing definition) A relatively simple, low risk linkage that allows a manufacturer to "enter" new markets. It is an arrangement in which a licensee is given the right to use a process, trademark, patent, or other proprietary item for a fee or royalty.
  2. (global marketing definition) An agreement between two companies in which the licenser grants the right to the licensee to sell a patented product in specified markets for an agreed-upon fee. It is a tool for participating in foreign markets without large capital outlays. When capital is scarce, when import restrictions forbid any means of entry, when a country is sensitive to foreign ownership, or when it is necessary to protect trademarks and patents against cancellation for non-use, licensing is a legitimate means of capitalizing on a foreign market.
  3. (sponsorship) The right to use a property's logos and terminology on products for retail sale. Note: While a sponsor will typically receive the right to include a property's marks on its packaging and advertising, sponsors are not automatically licensees.[1]

See also


  1. ^ American Marketing Association. Dictionary. <> (cited 3 June 2015).

We welcome comments that will help us improve the precision and clarity of our definitions. To submit a suggestion, please click on the Add Discussion bar below.
  • Comments are limited to registered users of this site. Click “Join” at the top right hand side of this page to apply.
  • If you would like to suggest a new marketing definition or have a general comment, please visit our home page.