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LSDefine

Simple English definitions for legal terms

distribution license

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A quick definition of distribution license:

A distribution license is a permission given to someone to do something that would normally be illegal. For example, a license to hunt on someone else's land. The license can be revoked at any time. It is usually written down in a document called a license. There are many different types of licenses, such as open-source licenses that allow people to use and modify software, and proprietary licenses that restrict what people can do with software.

A more thorough explanation:

A distribution license is a type of marketing license that allows a company to distribute a product or service in a specific geographic area. It is a permission, usually revocable, to commit an act that would otherwise be unlawful. The certificate or document evidencing such permission is also called a license.

For example, a software company may grant a distribution license to a third-party distributor to sell their software in a particular region. The distributor is authorized to distribute the software in that region, but the license may be revoked if the distributor violates any terms of the agreement.

Another example is a performing-rights society, such as ASCAP or BMI, granting a blanket license to a user to use all works in the society's portfolio in exchange for a fixed percentage of the user's revenues.

distribution in liquidation | distribution right

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