The term 'territory held in fee' is a legal term that refers to land owned by an individual or organization, usually with certain rights and obligations attached. The crossword solution for this term is 'FIEF', which is a feudal term for a piece of land granted by a lord to a vassal in exchange for loyalty and service. A FIEF was typically held in fee, meaning that the vassal had to pay a fee to the lord in order to keep the land.