A license is “a contractually transferred right to use a legally protected or unprotected in vention in exchange for a fee or another type of compensation” (Mordhorst 1994, p. 14). As it becomes evident from the definition, the transfer of the right of use is arranged in a license contract. The specific definition of the license contract is of central importance for the success of licensing. Figure 21.1 clarifies the basic model of licensing.