Brand licensing is a business arrangement where the owner of a brand, known as the licensor, allows another party, called the licensee, to use the brand's name, logo, or other intellectual property. This agreement typically involves a fee or royalty payment to the licensor, enabling the licensee to create and sell products or services under the licensed brand. This practice is common in various industries, including fashion, toys, and entertainment. For example, a popular movie franchise may license its characters to a toy manufacturer, allowing them to produce action figures. This benefits both parties by expanding brand reach and generating additional revenue.