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 Ohio, 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 and Trademark Office (USPTO). A patent license in Ohio allows the licensee to use the patent as per the terms of the agreement, which is a contract subject to Ohio's contract laws. The agreement typically specifies the scope of the license, the term for which the license is granted, and the financial arrangement, such as royalties, which are payments made by the licensee to the licensor. The types of licenses include exclusive licenses, which grant the licensee the sole right to use the patent, nonexclusive licenses, which allow multiple licensees to use the patent, and partially exclusive licenses, which may restrict use in certain ways but are not completely exclusive. Additionally, some licenses may include the right to sublicense, allowing the licensee to grant some or all of the rights they've obtained to another party. It's important for both licensors and licensees to have a clear understanding of their rights and obligations under the license agreement to avoid legal disputes, and they may seek the advice of an attorney to navigate the complexities of patent law and contract law.