Here we discuss what a licensing agreement is and how you can decide which one is right for you. In practice, patent holders choose to license their patents so that they can be manufactured and widely disseminated. Individuals and companies that produce patentable materials (such as new inventions) are generally not the same parties that can easily manufacture and distribute it. It is easier to allow someone else to deal with the commercial side of the patent while continuing to earn royalties. Examples of licenses are available in many different sectors. An example of a licensing agreement is an agreement between software copyright holders to a company, which allows it to use computer software for their day-to-day activities. Licensing your company`s assets certainly has advantages, but be sure to consider these factors when creating a licensing agreement: do your due diligence before the agreement. Both parties should carefully consider the other party. Check business credits and continuous management.
Ask for a degree. Visit the offices and production sites of the other company. Try to do it. While licensing agreements are inherently one-sided to protect the trademark holder, a good understanding of both parties will ensure that everyone does well. Prepare the property first. If you are selling or buying a license for a product, make sure that ownership of that product is clearly stated in the agreement. Also, make sure that no one else uses the asset (z.B. a trademark) and that the trademark is registered or subject to copyright registration. You don`t want to enter into a licensing agreement and find out that someone else is questioning the property.
Secret business licensing agreements are often concluded with confidentiality agreements (or NDAs). The NDAs indicate that the party receiving certain confidential information cannot share it with third parties. Those who enter into a licensing agreement should consult a lawyer, as there are complexities that are difficult for those who do not have a deep understanding of intellectual property law. In addition to the basics of a licensing agreement, there are a number of steps you can take to further strengthen your position. These include Christian, Glynna K. “Joint Ventures: Understanding licensing issues.” The licensing newspaper. October 2005. In a typical licensing agreement, the licensee undertakes to make intellectual property rights such as technology, brand name or licensee know-how available to the licensee. In exchange for the intellectual property of the licensee, the purchaser usually plays the donor a pre-feeding and/or a licence fee.
A licence fee is an ongoing fee paid for the licensee`s right to use intellectual property. The truth is that lawyers are qualified to address the legal language, such as guarantees, compensation and violation, but in most cases are not sufficiently familiar with the terms of the licensing agreement, including testing protocols, authorized channels, authorizations and quality controls to treat them properly on our behalf. If you or someone on your team has no experience negotiating licensing contracts, you may find yourself in one of the three most monstrous pitfalls in standard licensing agreements. Warning: Copyright licensing contracts are often used for consumer goods, as are brand licenses. They are also used for distribution, for example. B with musical works or films.