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Licensing is the formal recognition by a regulatory agency or body that a person has passed all the qualifications to practice that profession in that state. Typically, licensure requirements include some combination of education, training and examination to demonstrate competency.

The licensing plan is used to calculate a meaningful measure of the time to licensure. Reviewers are expected to list every submission pertaining to a product on the plan so that the review time measure is accurate.

Stock-Keeping Unit (SKU) An identification code for a product (or service) that captures all the important aspects of the product and differentiates it from others that the vendor may supply.

Licensing is a transfer-related market entry strategy. It involves a company (known as the licensor) granting permission to a company in another country to use its intellectual property for a defined time period.

The purpose of licensure is to show that the professional meets an industry- or state-approved quality standard. That way, practitioners throughout the healthcare sector, as well as patients, will understand that the individual possesses the prerequisite knowledge needed to perform the duties of the role.

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A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.