If you are the registered owner of intellectual property (IP), your work should be protected. However, you may wish to allow a third party to legally use your creative work for various reasons. A licensing agreement allows you to enter a relationship with a third party who wishes to use your protected property or service, usually for a price.
To ensure that you receive the benefits of this type of bargain, speak with an Alpharetta licensing agreement lawyer at Sparks Law. Our knowledgeable attorneys can discuss your situation and help draft a document that meets your specific needs.
Intellectual property owners enter into licensing agreements with third parties that want to use a protected property or service. The agreements should be memorialized and include elements that spell out the relationship between the parties. The licensee usually pays the licensor for the license use.
When owners of intellectual property license the right to use patents, trademarks, and copyrights, three types of licenses come into play.
Licensees pay the most for an exclusive license of the owner’s intellectual property. For the term of the agreement, the licensee is the only one permitted to use the IP. Even the owner loses their rights to use the property.
An owner grants non-exclusive licenses to multiple licensees, which means many people have the right to manufacture a patented machine, record the same song, or produce a product under the licensor’s logo. For instance, a designer could license the name to different manufactures that produce home goods, sunglasses, clothing, and personal items.
A sole license grants the licensee the exclusive right to use the intellectual property, but unlike the exclusive license, the licensor can also use it. This license is more expensive than a non-exclusive one but cheaper than an exclusive license.
A skilled lawyer at our Alpharetta office can draft a licensing agreement for a licensor or review one for a licensee to ensure the parties take all matters into account.
Standard terms in a licensing agreement include the names of the parties, the term and renewal term of the agreement, how exclusive the license is, the amount the licensee will pay the licensor, the schedule for making payments, and whether the contract can be assigned. Other clauses the parties should address in a licensing agreement are:
Although this list is long, other provisions may apply depending on the circumstances. For example, an agreement might contain confidentiality terms or circumstances for terminating the relationship. Because the terms of licensing agreements are unique to the parties entering them, a local attorney should be consulted to ensure all conditions are addressed.
When a protected product or service takes the market by storm, other business people may see potential in expanding the brand. In these scenarios, a licensing agreement is necessary to protect your innovation and continue to benefit from your ideas.
The Alpharetta intellectual property lawyers at Sparks Law are licensing agreement specialists. We are here to help you if you decide to expand your company in this unique way. Call today for your initial consultation.