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. The license is usually reduced to a written agreement that specifies the rights, obligations, and payments that are part of the license. A license may grant Licensee all rights to exploit the Asset (“Exclusive License”) or only some of the rights or rights of use in connection with other persons (“Non-Exclusive License” or “Limited”). The license normally grants the licensee all the exploitation rights it deems appropriate, but may have certain performance criteria or the license may expire or become non-exclusive. This type of agreement allows Harvard researchers starting a new business to easily license non-patentable, copyrighted software they have developed as part of research efforts led by professors. In cases where there are patentable elements such as unique algorithms, please read the model “Basic Exclusive License” agreement published above. A simple license agreement is the most basic form of a contract that gives one party the right to use another party`s assets for commercial purposes. License agreements typically transfer rights to use intellectual property, including trademarks, copyrights, patents, and even trade secrets. They are also common in software and other technologies. Unlike the sale of an asset, the licensor remains the final owner of the asset or methodology; limited rights to use what Licensor owns are transferred, not ownership.
The alternative to a license is the actual sale of the asset to the buyer, but most licensors still want to be owners so that they can use the asset in the future or in other territories or applications. It is essential that the licensee acknowledges that, unlike full ownership, the license is only a set of rights that the licensee receives with ownership of all remaining rights of the licensor. 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. A non-exclusive license grants the licensee a license to use the intellectual property, but the licensor is free to also use the intellectual property and license to whomever it wants. Therefore, many parties may have licenses for the same intellectual property at the same time. In addition to detailing all the parties involved, license agreements detail how the parties authorized to use real estate, including the following parameters: Another important element of a license agreement sets the timing of the transaction. 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 also includes provisions on the duration of the contract, renewal options, and termination terms.
A license agreement is a legal document between two parties – the licensor or the person who owns the intellectual property (IP) and the licensee or person who obtains a license to use the intellectual property. Licensor may own a copyright, trademark, patent, service mark, trade secret, know-how or other intellectual property. Whether you have your rights to others for branding, for written content that can be used in marketing materials or training materials, or if you have developed technologies used in POS systems or inventory tracking, the basic components of the agreement are the same. The basic elements include: For the use of [description of what is allowed]. Do you want to get a software license? Click here to create an End User License Agreement or Software License Agreement. In 2015, Apple Inc. and telecommunications equipment provider Ericsson entered into a global licensing agreement that ended a year-long patent dispute between the companies. Licensing simply means granting another person the right to use an asset they own for specific purposes and usually for a specific payment or series of payments called a “royalty.” In most cases, a party licenses the right to sell or exploit goodwill that it possesses, such as. B intellectual property, product or methodology.
Some examples include a license to develop and promote a patented product and sell it in a specific territory; a licence to use its own product as part of a mixture of products sold; a license to use a trade name or logo to sell a product in a specific location; the license to publish a copyrighted work that you have written, etc. etc. If you own a patent on a useful technology, if you have a copyright in a popular photo, if you have filed a special image, or if you own another invention or creative work that you want to make money with, you will need a license agreement. This Agreement allows you to set the terms of everything related to that particular IP and to protect your proprietary rights, including how Licensee may use the IP, who may sublicense the IP, the price of the license for the IP, and the length of time Licensee may use the IP. 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. The following standard license agreement contains an agreement between licensor Valerie J Toups and licensee Matthew K Jordan. Valerie J Toups agrees to allow Matthew K Jordan to use the Licensed Intellectual Property in accordance with the terms and conditions set forth. Those entering into a licensing agreement should consult a lawyer as there are complexities that are difficult to grasp for those who do not have a thorough understanding of intellectual property law. 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. Still confused? Check out this helpful article from Inc. on the basis of the license agreement. For examples of confidentiality agreements, material transfer agreements or research cooperation agreements, please visit our Examples of Agreements page. The parties shall describe the work to be licensed in as much detail as possible, including information on the quality of the work provided by the licensor to the licensee for use by the licensee. .