Exclusive License Law and Legal Definition

Exclusive license is a license limited to specific field. By exclusive license the licensor agrees not to grant other licenses that have the same rights. A license will be exclusive within the scope or field covered by the exclusive license. For example, exclusive right to use, manufacture and sell a patented article. The exclusive license binds the licensor not to enlarge the scope of license. However, the licensor can issue any number of licenses with different rights in the same scope, or licenses with same rights in different scopes. The licensee of an exclusive license has the legal right to initiate legal action against a person infringing the licensed rights conferred on him/ her.