A sublicense is permission granted by a licensee to another party when the original license allows that downstream grant.
Why a sublicense matters
A sublicense matters because a licensee does not automatically have power to pass IP rights to others. If sublicensing is not authorized, downstream use may exceed the license and create breach or infringement risk.
Sublicense terms can also affect royalties, quality control, territory, termination, and enforcement.
Where a sublicense appears
Sublicenses appear in software distribution, patent commercialization, trademark licensing, franchise-style arrangements, content platforms, publishing, and technology partnerships.
Practical example
A software company licenses a library and wants to let its resellers distribute products using that library. Whether it can do so may depend on sublicense language in the original license.
How a sublicense differs from nearby terms
A sublicense differs from a license agreement because it is a downstream permission from a licensee rather than the original rights owner. It differs from an assignment because a sublicense does not transfer ownership.
Related terms
Quick knowledge check
Why should a licensee check sublicensing rights before allowing another party to use licensed IP?