Select Page

A licensing agreement is a legal contract between two parties, the licensee and the licensee. In a typical licensing agreement, the donor grants the purchaser the right to manufacture and sell products, apply a brand name or trademark, or use the licensee`s patented technology. In return, the taker generally submits to a number of conditions relating to the use of the licensee`s property and undertakes to publicize the payments in the form of royalties. A licence is granted by one party to another party as part of an agreement between these parties. In the case of a government-issued licence, the licence is obtained by application. In the case of a private party, it is a particular contract, usually in writing (for example. B a lease or other contract). The simplest definition is “a licence is a promise not to file a complaint” because, with the exception of a marriage license (which grants only official recognition of the relationship between the two persons), a licence of the licensed party allows either to engage in illegal and criminal activity without the licence (p.B. fishing, driving a car or operating a radio or television channel) , to do something that would violate the rights of the licensing company (for example. B make copies of a copyrighted work) that could be sued without the license, the conceded, civil, criminal or both. The software license agreement is displayed in the dialog box [Licensing Agreement]. The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that would grant the image of a popular superhero to an action figure maker could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such an agreement.

The film studio therefore has the lever to take its business elsewhere if the manufacturer has cold feet. Another common element of licensing agreements is the party that retains control over copyrights, patents or trademarks. Many contracts also contain a provision on territorial rights or distribution in different parts of the country or the world. In addition to the various clauses included in the licensee protection agreements, some licensees may add their own requirements.