Also known as:license fees · licence fee · licence fees · licensing fee
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
A monetary charge imposed by a governmental authority for the privilege of pursuing a particular occupation, business, or activity. The charge may be accompanied by requirements that the licensee take specified actions or submit to regulations or restrictions.
2
A payment made under contract for the right to use patented, copyrighted, or other intellectual property. The amount may be a flat sum or calculated as a percentage of sales or usage.
Each sense below has its own examples, sources, and questions.
Sense 1
1
Sense 1
A monetary charge imposed by a governmental authority for the privilege of pursuing a particular occupation, business, or activity. The charge may be accompanied by requirements that the licensee take specified actions or submit to regulations or restrictions.
Sources & Authorities· 1 primary source
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Dictionaries
Examples4
Marriage License Issuance
Lila Lin and Lorenzo Lugo complete and sign a marriage application. Lila appears before the clerk and pays the statutory marriage license fee. The clerk issues the license and marriage certificate form after confirming both parties meet the age and other statutory requirements.
Territorial Tavern License
Landon Long opens a tavern in the Mississippi Territory and pays the annual license fee required by territorial law. The payment allows him to operate the business without facing the disapproval resolution that targeted unlicensed establishments. The fee is collected as part of the territory's regulatory scheme.
Frequently Asked2
Does a right to receive annual license fees qualify as a general intangible or an account under UCC Article 9?+
The rights qualify as accounts when they represent payment for licensed property or services rendered. The definition of account includes rights to payment for property that has been or is to be licensed. When the fees arise from such licensing, they fall outside the general-intangibles category even if the agreements bundle multiple services into a single invoice.
Supporting sources
What interest does a party seek when it recovers the value of a benefit conferred after another party stops paying license fees?+
The party seeks to protect its restitution interest by recovering the value of the benefit conferred on the breaching party. This measure prevents unjust enrichment rather than enforcing the expectation of future payments or reimbursing the claimant's own expenditures.
Supporting sources
Sense 2
2
Sense 2
A payment made under contract for the right to use patented, copyrighted, or other intellectual property. The amount may be a flat sum or calculated as a percentage of sales or usage.
Sources & Authorities· 1 primary source
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Dictionaries
Examples2
Patent Royalty Payment
Lunar Dynamics manufactures wallboard using patented processes under an agreement with the patent holder. The company pays a license fee equal to three and one-half percent of its selling price on all qualifying products. The payment satisfies the contractual obligation tied to use of the covered inventions.
United States v. United States Gypsum Co.333 U.S. 364, 395 (1948)
Copyright Licensing Revenue
Lakeshore Industries licenses its copyrighted works for television broadcast. The company receives license fees calculated according to audience ratings compiled by independent services. The fees represent the primary compensation for authorized public performances of the works.
Frequently Asked2
When may a plaintiff join a claim for unpaid license fees with unrelated tort claims against the same defendant?+
A plaintiff may join any claims against one defendant regardless of whether the claims arise from the same transaction or occurrence. The joinder rule permits adding contract claims for unpaid fees together with tort claims such as misappropriation or defamation in a single action.
Supporting sources
How does payment of a license fee affect the classification of software as purchase-money collateral?+
Separate itemization of a software license fee does not prevent purchase-money status when the software is acquired in an integrated transaction with goods and is principally for use in those goods. The integrated nature of the transaction supports extending the purchase-money security interest to the software component.
Immigration & Naturalization Service v. Jagdish Rai Chadha462 U.S. 919, 954 n. 16, 103 S.Ct. 2764, 2785 n. 16, 77 L.Ed.2d 317
Building Inspection Fee
Lily Lopez owns an apartment building and pays the annual license fee to the city housing bureau. The fee supports periodic inspections required before the occupancy permit is issued. Payment keeps the building in compliance with the municipal code.
Camara v. Municipal Court of City and County of San Francisco387 U.S. 523, 87 S.Ct. 1727, 18 L.Ed.2d 930 (1967)
Nonresident Practice Fee
Lance Lee, a resident of State A, seeks admission to practice law in State B. State B requires nonresidents to pay a substantially higher annual license fee than residents pay. The differential fee structure is challenged as burdening the privileges and immunities of out-of-state citizens.
Supreme Court of New Hampshire v. Kathryn A. Piper470 U.S. 274 (1985)
Sony Corp. of America v. Universal City Studios, Inc.464 U.S. 417, 435 & n.17 (1984)
License fees
for television broadcasts are set according to audience ratings, compiled by rating services that do not measure any playbacks of videotapes. The Studios make the serious claim that VTR…
license fee
in part to defray the cost of periodic inspections of their buildings. The inspections are to be made by the Bureau of Housing Inspection “at least once a year and as often thereafter as…
license fees
according to the size of the boats, or charging nonresidents a differential to compensate for the added enforcement burden they imposed. Id. , at 398-399. The dissent asserts that less…
or royalty) equivalent to three and one-half per cent (3 1/2%) of the selling price of
License
e of all plasterboard and gypsum wallboard of every kind, whether or not made by the use of…
Secured TransactionsApplicability and definitions (§ 9-101, et seq.) · Definitions: “account”; “purchase money security interest”; “control” (§§ 9-102 through 9-107)UBEFoundational