Cross-licensing

So, let's say you have a toy that you really like to play with, and your friend has a toy that they really like to play with. But, you both really want to play with each other's toys. What do you do?

Well, you could make a deal! Cross-licensing is when two people or companies make a deal to share their toys (or in this case, their technology). They give each other permission to use their inventions without getting into trouble for it.

For example, Company A might have a really good invention for making cars run more efficiently. But, Company B also wants to make efficient cars, and they have a patent (a special kind of approval) for a different part of the car that Company A needs. So, they make a deal. Company A tells Company B that they can use their invention, and in return, Company B tells Company A that they can use their patent.

This way, both companies get what they need to make their products better, without having to start a big fight over who owns what. And, in the end, you and your friend get to play with each other's toys!