Understanding License Agreements

License agreements limit the conditions under which one party may use another party`s property. While the real estate in question can encompass a large number of objects, including real and personal property, licensing agreements are most often used for intellectual property, such as patents and trademarks, as well as copyrights for written materials and visual arts. Pay attention to the definitions. Make sure the product or process is described in a complete and clear manner to avoid any misunderstanding about what is allowed. An example of a licensing agreement in the restaurant sector would be for a McDonald`s franchisee to have entered into a licensing agreement with McDonald`s Corporation allowing them to use the company`s branded and marketing materials. And toy makers regularly sign licensing agreements with movie studios that give them the legal power to produce action characters based on popular similarities of movie characters. There are many other methods to consolidate efforts to promote and sell a product or service ranging from joint ownership of a single business to joint ventures (partnerships of two or more companies) to distribution and sales representation agreements. In most cases, a license is the preferred method by a person or organization who simply wants to have a totally passive role to obtain royalties without participating in day-to-day or even strategic marketing decisions. As one customer put it, “I just want to sit down and exchange my license checks.” The four sections described above give only a brief overview of what you can expect from a standard software license agreement.

There are a few important clauses that you should insert to make sure you are well protected, no matter what happens in the future. While it`s hard to predict everything that may happen, you can take the time to make sure you`re protecting yourself as best as possible by including these essential clauses. Here`s another example: Salvatore has a line of T-shirts with a distinctive look that he has protected by trademark law. He sells a license to make the T-shirts to Carol, who pays him an advance and royalties based on the number of T-shirts they sell. Notice of Products Offered by Third Parties – In the case of an exclusive license granted in all or many areas, the licensee may first focus on a limited number of products or uses for the licensed technology. To support Harvard`s mission to promote the common good as much as possible by marketing its own technology at Harvard, Harvard may contain provisions similar to those in the link below, in order to encourage a licensee to develop products offered by third parties or to sublicense the licensee`s rights in Harvard patents to such a third party. to enable the development and commercialization of additional products. A license simply means granting another person the right to use an asset that one owns for specific purposes and normally for a payment or a number of payments called “royalties”. The most common right of a party is to sell or value a business value that one owns, such as intellectual property, a product or a methodology.

Some examples are a license to develop and promote a patented product and to sell in a given field; a licence to use its own product as part of a mixture of products sold; a license to use a trade name or logo for the sale of a product in a given territory scheme; the license to publish a copyrighted work that has been written, etc. . . .