Source: Stephen Key: "One Simple Idea for Startups". Talks at Google.  (McGraw Hill).

Licensing is renting your idea to a manufacturer.

"Award-winning entrepreneur, inventor, and business owner Stephen Key is one of the world's leading experts on getting business ideas off the ground. He draws on his own experience as a billion dollar inventor to offer how-to's and other takeaways you can use to get off the ground and into the black. Case studies, tips, and advice from other successful entrepreneurs underscore key principles to make it easier than ever for you to achieve your business and life dreams.

You don't need millions of dollars or a business, engineering, or manufacturing background to develop, produce, and sell your own product idea. All you need is one simple idea--and the passion to make it happen."