A more thorough explanation:

A sublicense is a license that grants some or all of the rights given to the licensee under an original license to another party.

For example, if Company A has a license to use a particular software, it can grant a sublicense to Company B to use the same software. Company B will have some or all of the same rights as Company A, depending on the terms of the sublicense.

Another example is when a university licenses its technology to a startup company. The startup company may then sublicense the technology to other companies for a fee.

These examples illustrate how a sublicense allows a party to share or transfer some or all of the rights granted under an original license to another party.