Here we discuss what a licensing agreement is and how you can decide which one is right for you. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. A licensing agreement is a written contract between two parties, in which one landowner allows another party to use that property under a number of parameters. A licensing agreement or licensing agreement usually involves a licensee and a licensee. Partial agreements. In the licensing agreement, as with other types of contracts, there may be sub-agreements. For example, the licensee may require a confidentiality agreement to prevent the licensee from disclosing proprietary product features or processes to others. The taker may require the donor to sign a non-compete agreement to prevent the donor from breaking the agreement by allowing another person to sell the product in the exclusive territory of the taker. Given the above details, everyone can see that licensing agreements are complex. The safest strategy is to publish your legal needs in the UpCounsel market. The lawyers of this site have a lot of experience in writing license agreements that correspond to everyone.
Whether you`re a new inventor or a growing company, UpCounsel lawyers can protect your interests and help you grow your brand. Because of the legal basis they have to cover, some licensing agreements are quite lengthy and documents complex. But most of these agreements cover the same fundamentals. These include the scope of the agreement, including restrictions on exclusivity or territories; financial aspects, such as necessary advances, royalties and royalty calculations; Guarantees for minimum sales Calendars with “on-the-market” dates, contract duration and renewal options; the lessor`s rights to quality monitoring and control, including procedures to follow; Minimum inventories that need to be maintained and returns and allowances. A non-compete clause. The licensee agrees not to allow anyone to compete with the licence in the area and period defined in the agreement. 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. They may insist on the guarantee that the licensee owns, for example, the property`s property rights, or they may insert a clause prohibiting the licensee from directly competing with the property granted in certain markets. Get a lawyer who has expertise in licensing agreements.
These agreements are complex and situation-specific. Many lawyers know how to build a general contract, but they cannot know the details of licensing agreements. An intellectual property lawyer could be a good place to start. If someone has a franchise, there may be a licensing agreement, and there may be several types of licenses within the franchise. For example, a McDonald`s franchise could include licenses for the use of the McDonald`s logo on products and packaging and another license for the manufacture of its patented processes or ingredients.