A license agreement is a legal agreement between two parties, called the licensor and the licensee. In a typical license agreement, Licensor grants Licensee the right to manufacture and sell goods, affix a brand name or trademark, or use Licensor`s patented technology. In return, Licensee generally submits to a set of terms and conditions relating to the use of Licensor`s property and agrees to make payments called royalties. To use the property of another company, you usually have to pay some kind of royalty. You might be able to pay for this in an initial lump sum or create a plan based on the sales of the property. 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. Subsidiary licences. The licensee may be granted the right to allow another person to manufacture or sell his products or not.
This depends on the specific terms of the license agreement. Harvard offers certain materials (usually biological research material) for commercial purposes on a non-exclusive basis. Some materials, such as mice. B, are usually offered on a lump sum basis or with fixed annual payments. others, such as hybridoma cell lines, also include royalty-based payments. Standard contracts for both types of hardware licenses are listed below. 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, and another license to manufacture its patented processes or product ingredients.
License agreements describe the terms under which one party may use another party`s property. While the properties in question may include a variety of elements, including real estate and personal effects, licensing agreements are most often used for intellectual property such as patents and trademarks, as well as copyrights for written materials and visual arts. Exclusivity and territory. The licensee is granted the exclusive right to manufacture and sell the product in a specific territory. Licensor agrees not to allow anyone to sell the Product in this territory. This part of the agreement is usually associated with a clause. 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.
When a party licenses something, they want to make sure it`s being used in the right way. This section of the Agreement describes how Licensee ensures that this is done. This may include regular quality assurance checks or give the licensor the right to monitor the sale. Another common element of licensing agreements is the party that retains control of copyrights, patents or trademarks. Many contracts also include a provision on territorial rights or on the person who manages distribution in different parts of the country or the world. In addition to the various clauses inserted in the agreements to protect the licensor, some licensees may add their own requirements. For example, they may require a guarantee that the licensor owns the rights to the property, or they may include a clause prohibiting the licensor from competing directly with the property granted in certain markets. A license agreement is a commercial agreement between two parties. The licensor (the seller of the license) owns the asset to be licensed and the licensee (the buyer) pays for the right to use the license.
Licensee shall pay royalties to the Owner in exchange for the right to sell the Product or use the Technology. Hire a lawyer who has expertise in licensing agreements. These agreements are complicated and specific to the situation. Many lawyers know how to create a general contract, but they may not know the details of licensing agreements. An IP lawyer could be a good place to start. Access to Harvard`s innovations should be as easy as possible. Our licensing agreements are fair and appropriate, and OTD`s experienced staff will work with you to help you achieve your business goals. To give you an idea of how these licenses take shape, we are happy to provide you with a number of examples of agreements illustrated here. If you have any questions about these samples, please contact us. Licensing agreements cover a wide range of known situations. For example, a retailer may enter into an agreement with a professional sports team to develop, produce and sell goods 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 might agree with a movie distributor to produce a series of greeting cards with the image of a popular animated character. Do your due diligence before the agreement. Both parties should carefully check the other party. Review business loans and management resumes. Ask for annual financial statements. Visit the other company`s offices and production facilities. Try everything. A License Agreement is an agreement between two parties (Licensor and Licensee) in which Licensor grants Licensee the right to use Licensor`s brand name, trademark, patented technology or ability to manufacture and sell goods. In other words, a license agreement grants the licensee the opportunity to use the licensor`s intellectual property. License agreements are typically used by the licensor to commercialize their intellectual property. Most licensing agreements also address the issue of quality. For example, Licensor may include terms in the Agreement that require Licensee to provide prototypes of the Product, packaging models, and even occasional samples throughout the term of the Agreement.
Of course, the best form of quality control is usually achieved before the fact – through a careful check of the licensee`s reputation. Another common quality regulation in licensing agreements concerns the procedure for disposing of unsold goods. If the items that remain in the inventory are sold as cheap imitations, it can damage the licensor`s reputation in the market. Non-Disclosure Agreement. Both parties agree not to divulge any trade secrets. 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”. 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.
A license agreement is a written agreement that gives you permission to use another party`s property under certain conditions. The two parties to this Agreement are the Licensor (the licensor) and a licensee (the licensor). The bargaining power of both parties to a licensing agreement often depends on the type of 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. Start and end of the agreement. Determine when the agreement is effective and when it ends. Describe the possibility of renegotiating and continuing the agreement at the end of the mandate.
Specify the circumstances in which the agreement could end before the expiry of the term. What happens to the ownership of the product in the end (usually it is converted back into owner)? In a typical license agreement, the licensor undertakes to provide the licensee with intellectual property rights such as the licensor`s technology, trademark or know-how. In exchange for Licensor`s intellectual property, Licensee will generally charge an upfront fee and/or license fee to Licensor. A royalty is an ongoing royalty paid for Licensor`s right to use Licensor`s intellectual property. .