what is the purpose of a licensing agreement
License Agreement. The legal document that creates the license is known as a license agreement. It establishes each party's rights with respect to the licensed product. The agreement may contain provisions that describe the duration of the license, the geographic scope of the license and whether the license is exclusive or nonexclusive. The contract establishes quality standards for use of the licensor's property; for example, the licensee cannot alter a trademark or use it on goods that would tarnish the licensor's image and reputation.