Licensing Fee

AAA

DEFINITION of 'Licensing Fee'

1. An amount of money paid by an individual or business to a government agency for the privilege of performing a certain service or engaging in a certain line of business.
2. A sum paid to use a copyrighted item, such as a photograph or logo, that is owned by someone else.

INVESTOPEDIA EXPLAINS 'Licensing Fee'

1. Restaurants must obtain a liquor license and pay a liquor licensing fee to serve spirits. Hairdressers must pay a licensing fee and obtain a cosmetology license to operate their business. Licensing fees, combined with the fees to get the training necessary to qualify for the license, create barriers to entry in licensed occupations, driving up the costs of services offered by licensed providers.
2. If a t-shirt company owner wanted to sell t-shirts imprinted with a Major League Baseball team's logo, the owner would need to get MLB permission and pay a licensing fee to obtain a license to use the image.

RELATED TERMS
  1. Copyright

    The ownership of intellectual property by the item's creator. ...
  2. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  3. Trademark

    A symbol, word, phrase, logo, or combination of these that legally ...
  4. Intellectual Property

    A broad categorical description for the set of intangibles owned ...
  5. Franchise

    A type of license that a party (franchisee) acquires to allow ...
  6. Peter Pan Syndrome

    A regulatory environment in which firms prefer to stay small ...
Related Articles
  1. Breaking Down Financial Securities Licenses
    Professionals

    Breaking Down Financial Securities Licenses

  2. Should You Add A Securities License ...
    Professionals

    Should You Add A Securities License ...

  3. Is Buying A Franchise Wise?
    Entrepreneurship

    Is Buying A Franchise Wise?

  4. Share The Wealth With Franchises
    Personal Finance

    Share The Wealth With Franchises

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center