An agreement between one company, the licensor, and another, the licensee, that permits the licensee to manufacture and / or market a product owned by the licensor. A licence may also be issued by authorities, to permit an activity that would usually be prohibited. This may require paying a fee and/or proving a proficiency within a particular field or business. This stipulation may also keep the authorities informed on particular relevant activities which may result in further licence conditions and restrictions.

See also:
License Product
Licensed
Food And Drug Administration (FDA)
Market entry