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 Wyoming, as in all states across the United 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 Wyoming allows the licensee to use the patent as per the terms of the agreement with the licensor, who retains ownership of the patent. The agreement typically specifies the scope of the license, the term for which the license is granted, and the financial arrangement, which often includes royalty payments. The types of licenses—exclusive, nonexclusive, and partially exclusive—determine the extent to which the licensee can use the patent and whether they can sublicense those rights. An exclusive license generally gives one licensee the sole right to use the patent, while a nonexclusive license allows the patent owner to grant the same rights to multiple licensees. Partially exclusive licenses fall somewhere in between. The right to sublicense is often included in exclusive licenses, allowing the licensee to grant use rights to third parties. It's important for parties entering into a patent license agreement in Wyoming to ensure that the terms are clear and that the agreement complies with relevant federal patent laws and regulations.