Which statement correctly describes the relationship between assignment and license?

Which statement correctly describes the relationship between assignment and license?

• A. Assignment is permanent; license is temporary
• B. License is permanent; assignment is temporary
• C. Both are permanent
• D. Neither involves ownership transfer

Answer: (A)

The key idea is ownership versus permission. An assignment transfers ownership of rights from one party to another, and once that transfer happens, it’s generally permanent—the rights belong to the new owner and can be exploited or reassigned as the owner sees fit under the contract. A license, on the other hand, is simply permission to use the work under defined terms (such as duration, territory, and purpose) without moving ownership to the licensee; licenses can be exclusive or non-exclusive and can end or be renewed, but the original owner still holds the rights. So describing assignment as permanent and license as temporary captures the typical relationship between these two mechanisms, with the important caveat that licenses can be long-term or even perpetual if the contract says so, but they do not transfer ownership.

The key idea is ownership versus permission. An assignment transfers ownership of rights from one party to another, and once that transfer happens, it’s generally permanent—the rights belong to the new owner and can be exploited or reassigned as the owner sees fit under the contract. A license, on the other hand, is simply permission to use the work under defined terms (such as duration, territory, and purpose) without moving ownership to the licensee; licenses can be exclusive or non-exclusive and can end or be renewed, but the original owner still holds the rights. So describing assignment as permanent and license as temporary captures the typical relationship between these two mechanisms, with the important caveat that licenses can be long-term or even perpetual if the contract says so, but they do not transfer ownership.