Well, this is going to be clear as mud to anyone else who tries to follow this conversation, so let me see if I can decipher it for the "legal jargon challenged" among the members:
The words "author" and "licensee" have specific meanings within copyright law.
An "author," under copyright law, is the creator of the original expression in a work. But, the person who wrote the book can
sign away his/her copyright in the work, making a new person the "author." Here's a link to the
Copyright Office's definition page, for those who want more information (including a booklet on Works for Hire)
Now, a "licensee" is sort of the equivalent of someone who holds a power of attorney for a person (like when a spouse needs to sign legal documents and isn't available on the right day.) The licensee has the FULL AUTHORITY of the person (in this case, the author) to act just as if they
were the author. So, a licensee of an author could approach agents, or other publishers, to sell translation rights, or audio rights or even cut the book into sections and publish them in a magazine. And the author can't say no--because they signed away that right for as long as the license lasts. A license is generally for a fixed term, and then, as Mr. Abraham indicates, the copyright returns to the author.
None of this has anything to do with "grant of rights." The confusing part is, as roach says, because they're very similar words. Also, it's confusing because it's the PUBLISHER who would be taking the author's place.
A license can a dangerous situation for an author in a publishing contract, because other clauses in the contract may provide that the licensee is entitled to all the MONEY from any later sales--without sharing with the author.
In the case of your contract, jcarol, I'd strongly recommend you have an entertainment attorney review the contract. It's difficult for anyone on a public forum to be able to advise on the complete meaning without seeing the whole thing (and posting it would be a bad idea.)
If you go to
Martindale.com (which is an on-line directory of thousands of practicing attorneys, all over the world) and click on the Browse by Areas of Practice (intellectual property is the one you're looking for), you can probably find someone in your area who can read it and explain it for you.
It's truly worth a couple hundred bucks paid to an experienced attorney in entertainment law to protect yourself.
Good luck!