What is Software Licensing? 

Software licensing is a way of establishing legal rights to use or redistribute software developed by a third-party software vendor or organization, while maintaining ownership. In the US, all software is protected by copyright laws unless it is produced by the US government or willingly donated to the public domain by the author. The terms and conditions of software use are described in the software license agreement signed by the relevant parties and can vary according to specific warranties, restrictions, and liability provisions.

What is IP Licensing? 

Intellectual property (IP) licensing grants others the right to use or lease IP under a contract between the IP rights owner and other parties, usually for a fee and other considerations. Trademarks, patents, and copyrights are typical types of IP that are licensed across industries. For instance, Arm offers processor licenses, processor optimization pack (POP) licenses and multiple bundles of IP rights for its technology. This helps its partners develop products and services and expand into new markets based on a proven world-class foundation with support from a vast ecosystem.

What is the Difference Between Software and IP Licensing? 

Intellectual property (IP) includes inventions, designs, and other kinds of works of art created by the human brain and subject to copyright law. Therefore, software is a type of IP, and licensing both IP and software is managed the same way. In both cases, the inventor or owner retains an interest and authorizes others to use the IP subject to an agreement that includes either a long-term payout or ongoing payment installments and other terms and conditions. For instance, Arm offers several ways to license its processor IP, software, tools, and other services in programs designed to meet any need.