In licensing arrangements, who is the licensor?

• A. Licensee
• B. Licensor
• C. Manufacturer
• D. Athlete

Answer: (B)

In licensing arrangements, the licensor is the rights holder who grants permission to use their intellectual property. This means the licensor owns the brand, logo, name, or likeness and controls how it can be used, for what purposes, and under what terms. The licensor licenses those rights to a licensee in exchange for fees or royalties, along with agreed constraints like territory, duration, and the field of use.

Think of a sports example: a league licenses its logo and branding to a clothing manufacturer. The league is the licensor, because it owns the rights and grants permission to produce and sell licensed apparel. The manufacturer in this case is the licensee, the party that actually uses the rights to create and market the products.

So, the licensor is the party that grants the license, while the licensee is the recipient of that license. Depending on who owns the rights, an athlete or a manufacturer could be a licensee, but they become the licensor only if they hold and grant the rights themselves.