Trademark licensing is an arrangement in which the trademark owner gives another party permission to use the trademark under agreed-upon conditions while the owner retains ownership of the mark.

Trademark ownership generally belongs to the person or legal entity that controls the nature and quality of the goods or services sold under the mark. An assignment transfers ownership from one party to another. A license, by contrast, gives another party permission to use the mark while the original owner keeps ownership.

Ownership changes should be documented carefully because trademark rights are tied to the goodwill of the business. 'Goodwill' means the customer recognition and reputation associated with the mark. A trademark generally should not be transferred as an empty symbol disconnected from the business and goodwill it represents.