Licenses assume an undeniably significant part in advancement and monetary execution. Between 1992 and 2002, the quantity of patent applications recorded in Europe, Japan and the United States and in India expanded by over 40%. The expanding utilization of licenses to safeguard developments by organizations and public exploration associations is firmly associated with late advancements in development processes, the economy and patent systems. Logical and mechanical advances have made new influxes of development, remarkably in data and correspondences innovation (ICT) and biotechnology, and development processes themselves have become focused less on individual firms and more subject to collaborations among worldwide organizations of entertainers in the general population and private areas. Changes in the lawful and administrative structure of patent systems have brought about more extensive spaces of patentable subject matter (patent systems in numerous nations presently incorporate biotechnology and programming), and stronger what's more important licenses. The research paper exclusively discuss the overview of patent system, concept of licensing and impact.