A license agreement is a written document between two parties that outlines the terms and conditions of a legally binding arrangement between them. This contract typically involves permission for one party (the licensee) to use or have access to intellectual property, such as software, trademarks, trade secrets, or other proprietary information, owned by the other party (the licensor). In exchange for the use of this material, the licensee agrees to pay a fee or another form of compensation. License agreements are not just tedious paperwork – they are necessary for protecting both parties and help ensure that everyone is on the same page with the terms and conditions of the contract.