A holder of an IPR right, such as a patent or design, can allow someone else to use the right, ie grant a license. This means that the holder still owns the IPR right, but another company or another person is given the right to use the right. The parties agree on the terms and conditions of use.

The license may be exclusive or limited. An exclusive license means that the holder of the right cannot license the right to anyone other than the person who has the exclusive license. A limited license means that the holder can license the right to more people.

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Using a license can be a way to reach the market if you, as the right holder, do not want to do marketing, sales, etc. yourself.