any service or technical assistance and or the ability to use of dedicated rights like trademarking or patents need a granting document which is called as license.

A license is a formal permission to perform, use, or possess something. A party could give a permit to another party as an element of an agreement between these parties. A shorthand definition of a license is “an authorization to use licensed material.”

Licensing lets you to instantly grant to use the existing production, supply, and promotion systems that other businesses may have spent decades making it. In return, you receive a percentage of the revenue from services or products offered under your license. Licensing fees typically amount to a small proportion of the sales price but can add up quickly.