Final answer:
The term "licensed" in the video game industry refers to games that incorporate copyrighted content, such as movie characters or music.
Step-by-step explanation:
Within the video game industry, the term "licensed" refers to games that incorporate copyrighted content, such as movie characters or music. These games obtain legal permission from the copyright holder to use their intellectual property in the game. For example, a game that features characters from a popular movie franchise would be considered a licensed game.