4.5
Sublicensing
Sublicensing means passing some of your licensed rights to another company. Most licenses forbid it unless the licensor gives written permission, because rights holders want to know and approve every company using their property.
Beginners often run into sublicensing without realizing it. Common situations include:
- Manufacturing. Using a factory to produce your goods is usually allowed, but the licensor may require the factory to be disclosed, approved, or to sign an agreement.
- Regional partners. Letting a distributor in another country make or brand products under your license is typically sublicensing.
- Media deals. A streamer licensing a show onward to another platform, or a distributor licensing a broadcaster, is sublicensing and needs explicit rights.
If sublicensing is allowed, the contract usually sets rules: the licensor approves each sublicensee, the sublicensee follows the same terms, and you remain responsible for their actions and royalty payments. The licensor may also take a share of sublicense income.
When in doubt, ask before you act. Unauthorized sublicensing can be grounds for termination.