A patent license is an agreement between a patent owner (licensor) and a person or entity that wants to use or benefit from the patent (the licensee) in which the licensor grants the licensee the right to use the license in the manner and for the period of time (the term) described in the license agreement.

The licensor grants the licensee a license to use the patent in exchange for royalty payments (royalties) from the licensee—often based on a percentage of sales of the goods or services in which the licensee uses the patent.

There are different types of licenses, including exclusive licenses, nonexclusive licenses, and partially exclusive licenses. A license may also grant the licensee the right to sublicense the patent rights to other persons or entities—often when the original license is an exclusive license.

In Iowa, as in all states, patent licensing is governed primarily by federal law, as patents are a matter of federal jurisdiction under the United States Patent Act (Title 35 of the United States Code). A patent license in Iowa allows the licensee to use the patent as per the terms of the agreement, which typically includes payment of royalties to the licensor. The agreement may stipulate the scope of the license, which can be exclusive, nonexclusive, or partially exclusive. An exclusive license generally means only the licensee has the right to use the patent, while a nonexclusive license allows the patent owner to license the patent to multiple parties. Partially exclusive licenses may include certain limitations, such as geographic restrictions or fields of use. Additionally, the license may allow for sublicensing, which permits the licensee to grant usage rights to third parties, often seen with exclusive licenses. It's important for parties entering into a patent license agreement in Iowa to ensure that the terms are clear and that the agreement complies with relevant federal patent laws and regulations. An attorney specializing in intellectual property law can provide guidance specific to patent licensing agreements.