A licensed agreement is an agreement between two parties in which one party grants permission to the other to use something that is usually copyrighted, trademarked, or otherwise owned exclusively by the first party. A license agreement outlines the requirements and expectations of both parties involved and includes details such as payment terms, restrictions on usage, duration of agreement, clause of termination, indemnity conditions, acceptable uses, and obligations of both parties. By signing a license agreement, the licensee (the person using the product) pledges to abide by the rules set forth in the agreement.