The glossary to understand and take action

Intellectual property licence

A licence authorises the use of intellectual property rights under agreed terms, without necessarily involving their transfer.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The agreement must specify the rights, use, territory, term and remuneration. Its legal effects and tax treatment must be assessed separately; a licence does not make all income eligible for a favourable regime.

In your file

What this changes in practice

A licence authorises a defined use of a right without necessarily transferring ownership of it. It must specify the subject matter, uses, territory, term, possible exclusivity and remuneration. The rights granted must be held by the person granting them. Within a group, the financial terms also require an analysis consistent with the functions performed and the tax framework.

A scenario to help you understand

Educational example

A company uses a trademark held by another company. The agreement specifies the authorised products, territories and the method for calculating the royalty.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Définir les usages autorisés
  • Vérifier la chaîne des droits
  • Encadrer la rémunération et la fin du contrat

The practical question

Find out more

Quels effets peut avoir une clause d’exclusivité dans une licence ?

Elle peut limiter la possibilité de concéder les mêmes droits à d’autres personnes ou définir un territoire ou usage réservé, selon le contrat. Lisez précisément son périmètre et les obligations associées. La rémunération, les objectifs et la fin de la licence doivent être cohérents avec cette exclusivité, afin d’éviter des attentes différentes entre les parties.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Intellectual propertyIntellectual property encompasses rights that protect certain creations, inventions and signs under their respective regimes.Transfer pricingTransfer pricing concerns the terms of transactions between related companies and their assessment under the arm's length principle.Accounting documentAn accounting document is a document that substantiates a transaction: an invoice, statement, contract or other evidence appropriate to its nature.Functional analysisAn examination of the activities, resources and risks of the parties to a transaction, in particular to prepare a transfer pricing analysis.Economic substanceEconomic substance refers to the actual elements of organisation, resources and decision-making assessed in the analysis of an activity or structure.

Put it into practice

Explore further with our guides

Practical guideInvention patent: preparing the filing and protection budget

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.