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. Intellectual Property

    A broad categorical description for the set of intangibles owned ...
  3. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  4. Franchise

    A type of license that a party (franchisee) acquires to allow ...
  5. Trademark

    A symbol, word, phrase, logo, or combination of these that legally ...
  6. Assigned Risk

    A risk that an insurance company is required to provide coverage ...
RELATED FAQS
  1. Do small banks ever act as custodians?

    Generally speaking, the market for custodian bank services is dominated by large banks. The best banks tend to grow in size, ... Read Full Answer >>
  2. How is the economic order quantity model used in inventory management?

    The economic order quantity model is used in inventory management by calculating the number of units a company should add ... Read Full Answer >>
  3. How can I lower my effective tax rate without lowering my income?

    There are lots of ways to lower your effective tax rate, although your individual circumstances determine whether you can ... Read Full Answer >>
  4. How is overhead distributed through total absorption costing?

    Through total absorption costing, overhead is distributed into indirect costs incurred from the manufacturing and production ... Read Full Answer >>
  5. How does the market share of a few companies affect the Herfindahl-Hirschman Index ...

    In economics and commercial law, the Herfindahl-Hirschman Index (HHI) is a widely used measure that indicates the amount ... Read Full Answer >>
  6. What are the differences between absorption costing and variable costing?

    Absorption costing includes all costs, including fixed costs, in figuring the cost of production, while variable costing ... Read Full Answer >>
Related Articles
  1. Professionals

    Breaking Down Financial Securities Licenses

    Find out which exam you need to begin your career as an investment professional.
  2. Professionals

    Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
  3. Entrepreneurship

    Is Buying A Franchise Wise?

    If you like being your own boss, this is not the job for you.
  4. Personal Finance

    Share The Wealth With Franchises

    Skip the first step and build off of someone else's successful business model.
  5. Taxes

    Corporate Tax Rates: The Highs and the Lows

    The United States is No. 2 in the world for its high corporate tax rate. There are ways around paying it, and many nations with lower rates are worse off.
  6. Professionals

    What the DoL’s Fiduciary Policy Means for Advisors

    After many delays, the DoL's new fiduciary policy is coming. Here's an overview on what financial advisors should expect.
  7. Entrepreneurship

    What's the Verdict on START-UP NY?

    START-UP NY is an initiative designed to attract companies to New York State by giving them 10 years of tax breaks. Sounds good, but is it a success?
  8. Investing News

    Germany: Creating Climate For Tech Sector To Grow

    Many German companies, which are eager to catch up with the rest of the world by entering the digital age, are investing in tech startups.
  9. Retirement

    The Purpose Of Having A Social Security Number

    When (and why) it is necessary to use the nine-digit number the United States government issues to individuals and when you should avoid it.
  10. Investing News

    New Avenues For Bitcoin Funding Opened Up By SEC

    Could New SEC Regulations Pave the Way for Investing in Bitcoin Startups?

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center