Licensing Revenue

Definition

Income generated by granting third parties the right to use intellectual property, technology, brand, or other proprietary assets under a licensing agreement in exchange for fees or royalties. Licensing revenue is a capital-efficient business model for intangible-intensive companies, enabling monetisation of IP assets at scale without proportional increases in cost. Royalty rate benchmarking and licence structure are key inputs in IP valuation using the relief-from-royalty method.