License Agreement
(Tenant as Licensor)

Summary

This license agreement template is for use when a tenant desires to license a portion of its leased premises to a third-party licensee. This template includes practical guidance, drafting notes, and alternate and optional clauses. Unlike lease agreements, license agreements do not convey an interest in real property. Structuring a transaction as a license may enable the party granting a license to avoid certain burdens associated with the landlord-tenant (or sublandlord-subtenant) relationship. The requisite and / or customary terms of a license agreement vary depending on the jurisdiction in which the subject building is located. Failure to comply with jurisdictional requirements may result in a license agreement being treated as a lease agreement or sublease agreement by a court or governmental authority. Practitioners should consult with local counsel to ensure compliance with the applicable laws and regulations. Generally, license agreements (1) convey a limited, short-term right to use and / or occupy space for a specific purpose, (2) are revocable at will by licensor, and (3) are nontransferable by licensee. Licensor's counsel customarily prepares the initial draft of a license agreement. This license agreement template includes optional and alternative provisions that licensee's counsel may request to secure additional rights and protections for its client. For a license agreement template where the owner is the licensor, see License Agreement (Owner as Licensor). For additional license agreements, see Roof Antennas and Dishes Clause (Pro-Landlord), Rooftop Telecommunications Lease (Pro-Tenant), and Rooftop Traffic Camera Lease. For general information on the office leasing process, see Office Leasing Resource Kit.