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Exclusive licences are those which create a unique relationship between the licensor and the licensee. With such license agreements, the licensor agrees that the licensee is the only one who can use the intellectual property. These usually cost more for the licensee. A license agreement is a legal agreement by which a party that owns a particular intellectual property allows another party to use that intellectual property. The party that owns the ip (the licensor) receives a payment (a licence fee) if the other party (the licensee) uses the pi. A well-written license agreement is important for licensees and licensors. If your business needs help at any point in the process, our team of contract lawyers can help. Whether it`s writing the entire agreement or reading your own template, we have the expertise to make sure it`s done right. That is all that both sides want to add.

For example, some license agreements include non-disclosure agreements. This clause would prevent the licensee from disclosing proprietary information or processes. This article is only a general overview of license agreements; It is not intended to be complete and should not be used to prepare a legal document. Using a template that you find on the Internet is dangerous because it cannot meet certain laws and your own situation. In May 2018, Nestlé and Starbucks entered into a $7.15 billion coffee license agreement. Nestlé (licensee) has agreed to pay $7.15 billion in cash to Starbucks (the Licensor) for the exclusive rights to sell Starbucks products (single-serving coffee, tea, bean bags, etc.) worldwide through Nestlé`s global distribution network. In addition, Starbucks receives royalties on packaged coffees and teas sold by Nestlé. Usually, the purpose of a license is that the licensor is passive and receives only royalties, while the licensee participates in the business or development and is free to operate as long as the royalties are paid and other criteria are met.

Failure by licensee to comply with the license agreement usually results in termination of the license and payment of damages to the licensor. Here we discuss what a license agreement is and how you can decide which one is best for you. If someone has a franchise, there may be a license agreement, and there may be several types of licenses within the franchise. For example, a McDonald`s franchise could include licenses to use the McDonald`s logo on products and packaging, as well as another license to manufacture its patented processes or product ingredients. The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that licenses the likeness of a popular superhero to an action figure creator could have significant bargaining power in this negotiation, as the manufacturer is likely to benefit enormously from such an agreement. The film studio therefore has the leverage to take its business elsewhere if the manufacturer is cold on its feet. Another important element of a license agreement sets the company`s schedule.

Many licensors insist on a strict go-to-market date for products licensed to external suppliers. After all, it is not in the best interest of the licensor for a company that never markets the product. The license agreement will also include provisions on the duration of the contract, renewal options, and termination terms. License agreements can be broken down by type of intellectual property they license. They can be divided into exclusivity and duration. Are you planning to license something you own, but you`re not sure about the different types of licensing agreements? There are several ways to grant an intellectual property (or “IP”) license. To do this, you must first understand the different types of license agreements. This article describes the basic requirements for a successful license agreement. Competent legal and tax advice is required before entering into a license agreement in the United States. These are usually the most complex types of licensing agreements because of everything related to obtaining and maintaining a patent.

Licensing agreements cover a wide range of well-known issues. For example, a retailer could enter into an agreement with a professional sports team to develop, produce and sell products bearing the sports team`s logo. Or a small manufacturer could license proprietary production technology to a large company to gain a competitive advantage instead of spending time and money developing its own technology. Or a greeting card company could strike a deal with a movie rental company to produce a series of greeting cards in the image of a popular animated character. Among the many types of business relationships encountered in the modern world of transactions is the concept of a license agreement, where one party grants another the right to use a right, trade name, method or product, or other asset for mutual purposes in a business context. The natural or legal person granting the right is referred to as the “Licensor”. The natural or legal person who receives the right is referred to as the “Licensee”. The term license implies to allow by granting powers.

Therefore, a license agreement is a contract between two parties – namely the licensor and the licensee. This is usually a written contract in which the owner allows the licensee to use their property for a certain period of time. The licensor usually receives money to serve in return by allowing access to their property. License agreements are usually signed to secure intangible properties, such as patents, copyrights, trademarks to protect technological innovations, company names, logos, and others. In the event of an extreme license agreement, Licensor gives Licensee flexibility to manufacture and sell products, use its brand name, or use Licensor`s patented technological know-how. Copyright licensing agreements are often used for consumer goods, as are trademark licenses. They are also used for prizes, such as musical works or movies. To use the property of another company, you usually have to pay some kind of royalty.

You might be able to pay this in an upfront amount or create a payment plan based on the property`s sales. For example, a license agreement may stipulate that the licensee must pay 1% of all sales to the licensor. If a licensee earns $10 per item, they owe the licensor 10 cents for each item sold. To schedule a consultation on your IP license, call our office at 407-660-2964, contact us online or email us at In addition to detailing all the parties involved, the license agreements detail how the parties authorized to use real estate, including the following parameters: Perform your due diligence before the agreement. Both parties should carefully check the other party. Review business loans and management resumes. Ask for financial statements. Visit the other company`s offices and production facilities. Try everything. Sub-agreements.

In the license agreement, as with other types of contracts, there may be sub-agreements. For example, Licensor may require a non-disclosure agreement to prevent Licensee from disclosing proprietary product features or processes to third parties. Licensee may require Licensor to sign a non-compete clause to prevent Licensor from breaching the Agreement by allowing someone else to sell the Product in Licensee`s exclusive territory. Start and end of the agreement. Explain when the agreement is effective and when it ends. Describe the possibility of renegotiating and continuing the agreement at the end of the term. Specify the circumstances in which the agreement could end before the expiry of the term. What ultimately happens with ownership of the product (usually it is returned to the owner)? A license agreement is a legal agreement between two parties, called a licensor and licensee. In a typical license agreement, Licensor grants Licensee the right to manufacture and sell goods, enforce a brand name or trademark, or use Licensor`s patented technologies. In return, the licensee usually submits to a set of conditions for the use of the licensor`s property and undertakes to make payments called royalties […].