A licensing agreement is a legal contract between two parties, usually one who owns intellectual property and another who wants to use that property. The owner of the intellectual property grants permission to the other party (the licensee) to use their property for a specific purpose or duration in exchange for payment, royalties or other consideration. This agreement outlines the terms and conditions under which the licensee can use the intellectual property, such as trademarks, patents, copyrights, or trade secrets. It also defines the rights and responsibilities of both parties to ensure that the intellectual property is used in a way that respects its owner's rights while allowing the licensee to benefit from it.