In licensing arrangements, who is the licensee?

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

Answer: (C)

In licensing arrangements, the licensee is the party that receives permission to use someone else’s intellectual property under the license terms. The rights holder (licensor) owns the brand or content and grants rights to the licensee—typically a manufacturer or product developer—to use it on products or in specific markets in exchange for royalties or fees. The licensee must follow the contract’s rules, including quality standards, geographic rights, duration, and payment. For example, a sports team licenses its logo to a clothing company; that company becomes the licensee, using the logo on apparel while the team remains the licensor. This shows why the licensee is the correct answer.