Your intellectual property (IP) is registered and safely in your control. For reasons that may include your retirement, business expansion, or third-party inquiries, now may be the time to allow others to use or market your IP.
If you are considering expanding your IP presence, work with an experienced attorney at Sparks Law to memorialize a deal in writing. An Atlanta licensing agreement lawyer could help ensure that you and your licensee benefit from the arrangement.
Intellectual property can be protected by copyrights, patents, or trademarks. Copyrights cover creative work, such as books, photographs, songs, and movies. Patents are granted for inventions, designs, and plants that reproduce asexually. Trademarks protect a company’s branding elements, such as logos and slogans.
Intellectual property owners, called licensors, may enter into agreements with other parties. These agreements can allow other parties, known as licensees, to use the protected property or service.
Licensing agreements are contracts in which all parties give up something valuable to get something else that is valuable. In this case, a licensor gives up the exclusive right to use IP for royalty payments. A licensee gives up a portion of the money earned from using the IP in exchange for the license.
All licensing agreements include the parties’ names, the length of time the contract is valid, any renewal terms, the amount of money the licensee will pay the licensor, the payment schedule, and whether assignments are allowed. The lawyers at our Atlanta office can also discuss other important questions when creating a licensing agreement, such as:
The parties should also consider other provisions. For instance, the parties may decide to keep the agreement terms confidential. Reasons for termination should also be included in the document. Licensing agreement terms are unique to the parties adopting them, so parties should consult a nearby lawyer to ensure their wishes are properly memorialized.
IP holders can grant licenses to one person or business, or to several parties. Generally, there are three types of licenses.
Licensors give up the right to use their intellectual property when they transfer it to a licensee under an exclusive licensing agreement. The licensee becomes the only party who can use the property for the specified term. An exclusive license is typically the most expensive type.
An IP owner grants a non-exclusive license to multiple parties, who each have the right to use the property according to their business model. Usually, non-exclusive licenses are granted to businesses in different industries. For instance, the Pierre Cardin name has been licensed to small leather goods manufacturers, companies that market sunglasses, and men’s clothing manufacturers.
A sole license is similar to an exclusive license, with one important difference that makes it more affordable for the licensee. Although only one licensee can use the intellectual property, the original owner can continue to use it as well.
Whether you are the licensor of intellectual property or you intend to buy a license, a local attorney at Sparks Law can help determine the unique elements that should be included in your licensing agreement.
You have found success by creating and selling your intellectual property. Now, you may have an opportunity to expand that success by entering licensing agreements with others. Before you do, talk to the attorneys at Sparks Law.
An Atlanta intellectual property lawyer on our team can help expand your product’s range while you collect royalties. Call today to learn how we can assist in broadening your market and reaping the rewards.