Legal Definitions - license coupled with the grant of an interest

A license coupled with the grant of an interest refers to a specific type of permission (a license) to use someone else's property that is granted alongside, and is essential for the enjoyment of, a separate, legally recognized right or ownership interest in something located on or related to that property. Unlike a simple license, which can usually be revoked by the property owner at any time, a license coupled with an interest is generally irrevocable. This is because revoking the permission would prevent the holder from exercising their established property right or interest.

Here are some examples illustrating this concept:

• Timber Harvesting Rights: Imagine a landowner sells all the standing timber on their property to a logging company. The logging company now has a legal ownership interest in the trees themselves. To harvest these trees, the company needs permission to enter the landowner's property with equipment and personnel. This permission to enter and operate is the "license," and it is "coupled with" the logging company's ownership "interest" in the timber. The landowner cannot revoke this license because it would prevent the logging company from exercising its right to harvest the timber it legally owns.

• Sale of Fixtures or Equipment: Consider a factory that sells a large, specialized machine that is bolted to its floor to another manufacturing company. The buying company now owns the machine, which is its "interest." To remove the machine, the buyer needs permission to enter the seller's factory, dismantle the equipment, and transport it away. This access is the "license," and it is "coupled with" the buyer's ownership "interest" in the machine. The seller cannot revoke this license, as doing so would prevent the buyer from taking possession of their purchased property.

• Mineral Extraction Rights: A property owner might grant a mining company the exclusive right to extract a specific mineral, such as coal or gold, from their land for a defined period. The mining company acquires a property "interest" in the minerals once extracted, and often an interest in the right to extract them. To conduct mining operations, the company requires permission to access the land, set up machinery, and transport the extracted minerals. This permission is the "license," and it is "coupled with" the mining company's "interest" in the minerals and the right to extract them. The landowner cannot revoke this access because it is fundamental to the mining company exercising its granted rights.