Legal Definitions - use-based license

A use-based license is a type of license that allows a person to perform an act that would otherwise be illegal. It is usually revocable and does not transfer any property interest to the licensee. The permission granted by the license is based on personal confidence and is not assignable.

For example, a hunting license is a use-based license that allows a person to hunt game on someone else's land. The license does not transfer any ownership of the land to the licensee, but it gives them permission to enter the land and hunt. Another example is a distribution license, which is a marketing license that allows a person to sell a product in a specific geographic area.

Use-based licenses are different from other types of licenses, such as exclusive licenses, which give the licensee the sole right to perform the licensed act, and nonexclusive licenses, which allow the licensee to use the licensed item on a shared basis with the licensor and possibly other licensees.