In any industry, creating and filing license agreement documents properly is an essential part of business. The documents have to be prepared scrupulously, as they need to cover the whole scope of potential intellectual property abuses. In most cases, the services of licensing solicitors are absolutely necessary to avoid potential issues that could occur in the future.
What is a licensing agreement?
The simplest way to answer what is licensing agreement is to describe it as a document that grants one party the permission to sell products or utilise technologies that are owned by another party. The agreement itself is a way for the owner of the intellectual property to protect their ownership rights, and our IP agreement solicitors are ready to provide the required assistance with drafting such a document.
To properly protect the rights on intellectual property, the agreement has to specify all the eligible and non-eligible ways of the other party using the IP. A vital point of any such agreement is that the licensing deal may be cancelled, in case other parts of the documents are violated. This step is especially important with international operations for multiple reasons. Firstly, the parties from other countries might not be as fluent in your legislation, which is why the agreement has to specify all the details. Secondly, in case it is a multi-company partnership, the document should specify the locations assigned to each participant of the deal, in order for them not to violate each other’s rights.
What is the advantage of licensing agreements?
- The holders of IP are able to benefit from their intellectual property.
- Other parties get access to IP they would not have otherwise.
- The licensor agreement protects the rights of both parties.
What clauses to include into a licensing agreement?
First of all, the licensing agreement must specify the exact IP and the time period, for which the other party is allowed to use it. Secondly, it should have clauses covering the ownership of the intellectual property after the contract is finished. Last but not least, the licensing contract should have all the details regarding sanctions for violating clauses of the agreement.
How to deal with termination of a licensing agreement?
Most agreements have specific time frames, for which they are active. To terminate it, it is possible to wait for this time period to end. Another option is to withdraw the license based on one of the clauses specified in the document. In case the parties wish to renew the license, such an option is also possible.
What are the kinds of sanctions that a licensee might impose on another?
The two most common kinds of penalties are license withdrawals and financial fines.
How can we help?
Our team of solicitors has a huge experience in the sphere of intellectual property agreements, and our professionals are ready to help your business draft the document required for your specific case. Contact us right now to get the first consultation for free.