Licensing is a key business strategy. It's a way to maximize the earnings from inventions and creative works, which are called intellectual property or "IP.".

What is licensing?

Licensing is when you grant some rights to intellectucal property "IP" that you own. It is really a partnership of mutual cooperation between the licensor, who owns the IP, and the licensee, who is given the right to use it for certain purposes.

Question: What are royalties?

Royalties are a way of calculating compensation for use of intellectual property. The licensee is granted the right to use it for a royalty. Royalties are usually based on a percentage of the revenues that are generated. For instance, if I license my course to a company and say,