If you've composed a written work or song that you wish to promote commercially, you will want to license your work to allow others to distribute or perform your work for a fee. A license may be exclusive or nonexclusive and can be restricted by factors such as purpose, territory, duration, and media.

For example, if you've written a novel and wish to market it through a publisher, you can enter into a license agreement which grants the publisher the rights to copy and distribute the book in a specified geographic region. The publisher would enjoy these rights for whatever time period specified in the agreement. Unless specified in your agreement, the publisher would not enjoy other rights, such as the right to distribute the novel as an audiobook.

An exclusive license allows only the party who signed an agreement with you (the licensee) to exercise the right being licensed. A nonexclusive license allows multiple licensees to exercise the same rights being transferred in the license. Usually, an exclusive license must always be in writing to be valid, and all licenses should be recorded with the U.S. Copyright Office.