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 Kansas, 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 Kansas allows the licensee to use the patent as specified in the agreement, which is a contract subject to state contract laws. The agreement typically details the scope of the license, the term, and the financial arrangement, such as royalties. Exclusive licenses grant the licensee the sole right to use the patent, while nonexclusive licenses allow the patent owner to grant similar rights to others. Partially exclusive licenses may restrict some rights exclusively to the licensee while allowing the licensor to retain or grant others. Additionally, the right to sublicense can be included, particularly in exclusive licenses, enabling the licensee to permit third parties to use the patent. It's important for parties entering into a patent license agreement to ensure that the terms are clear and that the agreement complies with both federal patent laws and Kansas state contract laws.