Legal Definitions - label license

A label license is a type of license that grants permission to use a product or process that would otherwise be illegal. It is usually found on the package of a product and gives the purchaser the right to use the product in a certain way without having to pay additional fees to the licensor.

For example, a label license may allow a person to use a certain type of pesticide on their crops without violating environmental regulations. Another example is a label license that allows a person to use a particular software program for personal use only.

The label license is a form of bare license, which means that no property interest passes to the licensee. The license is revocable at will, and the licensor can terminate the license at any time.