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 Pennsylvania, 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 PA 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 an exclusive license, where only the licensee has the right to use the patent, a nonexclusive license, which allows the licensor to grant the same rights to others, or a partially exclusive license, which may restrict some rights to the licensee while allowing others to be shared. Additionally, the licensee may be granted the right to sublicense if the original license is exclusive. It's important for both licensors and licensees to ensure that their agreements comply with applicable federal patent laws and regulations, and they may consult with an attorney to navigate the complexities of patent licensing agreements.