Commercial licensing is a contractual agreement that allows one party (the licensee) to use certain intellectual property owned by another party (the licensor) for commercial purposes. This type of licensing is common in software, music, and various artworks, where the licensor retains ownership of the intellectual property while enabling the licensee to capitalize on it by selling or distributing the licensed material. Typically, commercial licenses will specify the scope of use, any limitations, the duration of the agreement, and the financial terms such as royalties or fees. This arrangement helps protect the rights of the creator and provides a legal framework for the licensee.