A license is usually established by an explicit or tacit agreement. The licensee must approve the license, which can be shown in writing, or the licensees who accept their exercise. In addition, unlike many other contractual agreements, a license does not require consideration, a license can be established with or without it. In addition, the question of whether an agreement is considered a “licence” and not a tenancy clause depends on three essential characteristics of a licence: (1) a clause authorizing the licensee to revoke “as he sees fit”; (2) the maintenance of absolute control of the premises by the licensee; and (3) the provision to the licensee of all essential services necessary for the authorised use of the premises by the taker.  Under a typical end-user licensing agreement, the user can install the software on a limited number of computers. [Citation required] Patent licenses have been studied in formal business models in the field of industrial organization. In particular, Katz and Shapiro (1986) studied the optimal licensing strategy of a research laboratory sold to competing companies in the product market.  It appears that the licensee`s incentives to develop innovation may be exaggerated (compared to the social protection solution), while the licensee`s incentives to disseminate innovation are generally too low. Subsequently, the pioneering work of Katz and Shapiro (1986) was extended in several directions. For example, Bhattacharya, Glazer and Sappington (1992) have taken into account the fact that licensed companies need to invest more to develop marketable products.
 Schmitz (2002, 2007) has shown that due to negative selection or moral risk, asymmetric information can lead the research laboratory to sell more licenses than would be the case for complete information.   Antelo and Sampayo (2017) studied the optimal number of licenses in a signalling model.  The software license agreement is displayed in the dialog box [Licensing Agreement]. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials.