The benefits of licensing can be viewed from two angles: licensees and licensees. The identification of proprietary software licenses is that the software publisher grants the use of one or more copies of software as part of the end-user licensing agreement (EULA), but ownership of those copies remains within the purview of the software publisher (hence, the term “owner”). This proprietary software licensing feature means that certain software rights are reserved by the software publisher. Therefore, it is typical of the EULAs to include terms that define the use of the software, such as the number. B of authorized facilities or distribution conditions. Patent licenses have been studied in formal business models in the field of industrial organization. In particular, Katz and Shapiro (1986) studied the optimal licensing strategy of a research laboratory sold to competing companies in the product market.  It appears that the licensee`s incentives to develop innovation may be exaggerated (compared to the social protection solution), while the licensee`s incentives to disseminate innovation are generally too low. Subsequently, the pioneering work of Katz and Shapiro (1986) was extended in several directions.
For example, Bhattacharya, Glazer and Sappington (1992) have taken into account the fact that licensed companies need to invest more to develop marketable products.  Schmitz (2002, 2007) has shown that due to negative selection or moral risk, asymmetric information can lead the research laboratory to sell more licenses than would be the case for complete information.   Antelo and Sampayo (2017) studied the optimal number of licenses in a signalling model.  The licensing agreement should contain a language dealing with the issue of property disputes. What happens, for example, if someone challenges ownership of a trademark you have licensed? Or, what happens if someone plagiarizes the copyrighted work that is licensed? Both parties to the licensing agreement should agree on how to deal with these issues. Restrictions. What the licensee can`t do with the license. Perhaps the taker cannot sell it at a certain price or sell it under license or use it in some way or certain types of products. A licensing agreement is a contract between two parties (conedenters and licensees) in which the donor grants the purchaser the right to use the mark, brand, patented technology or the ability to manufacture and sell goods in the licensee`s possession.
In other words, a licensing agreement gives the licensee the opportunity to use the licensee`s intellectual property. Licensing agreements are often used by the licensee to market their intellectual property. The main effect of this form of licensing is that if the ownership of the software remains in the hands of the software publisher, the end user must accept the license of the software. In other words, without the acceptance of the license, the end user cannot use the software at all. An example of such a proprietary software license is the license for Microsoft Windows. As with proprietary software licenses, this license contains a broad list of activities that are limited, for example.B.: reverse engineering, simultaneous use of software by multiple users, and the publication of repositories or performance tests.