What does out licensing mean?

Out-licensing refers to the process by which a company grants permission to another entity to use its intellectual property, such as patents, trademarks, or technologies, under specified conditions. This arrangement allows the licensee to develop, manufacture, or sell products based on that intellectual property, typically in exchange for royalties or licensing fees. Out-licensing can help companies monetize their assets while focusing on their core business areas. It is commonly used in industries like pharmaceuticals, technology, and entertainment.