What is a Licensing Agreement?
A Licensing Agreement is a written contract between two parties in which the Licensor (the person or the entity who owns or controls the intellectual property) grants another person or entity (Licensee) the right to use its intellectual property. The intellectual property which is the subject of a Licensing Agreement can be of many forms, including copyrights (written works, audio, video, design, etc.), patents or technology, trademarks, or any other intellectual property which the Licensor owns or controls. Use of the intellectual property can involve producing and selling goods which utilize the said intellectual property.
Why do you need to use a Licensing Agreement?
A Licensing Agreement is important for both the Licensor and the Licensee in order to properly define the rights and responsibilities of both parties with respect to the grant of the License. For the Licensor, a Licensing Agreement allows the latter to make money from its intellectual property by allowing others to use the same but without having to surrender ownership while at the same time, controlling the use and limitations of the granted License. Licensees on the other hand may want to define the terms of the License in order to ensure that it would be protected against third party infringement claims.
When do you need to use a Licensing Agreement?
Imagine a situation where a person wants to use the work, invention, or brand of another – a Licensing Agreement can be executed so that the said person can have a License (in exchange for royalties) in order to use the intellectual property of the Licensor.
Are there any deadlines or times for when this form is needed?
It would be best to have a Licensing Agreement prior to the execution of any Licensing arrangement – no matter how credible the reputation of a Licensor or Licensee is, you would always want to protect yourself by clearly defining the terms and conditions of your agreement.
What are the main things that go on this form?
- The details of the Licensor, or the person/entity who owns or controls the intellectual property to be Licensed.
- The details of the Licensee, or the person/entity who wishes to use the intellectual property of the Licensor.
- A description of the intellectual property that is the subject of the Licensing Agreement.
- The compensation arrangement or Royalty fees to be paid by the Licensee to the Licensor.
- The term of the Licensing Agreement.
What are the most common mistakes to avoid?
Common mistakes that should be avoided with respect to a Licensing Agreement include failing to include the description of the intellectual property, scope and limitations of the License, the type of royalty/compensation arrangement, ownership of derivative works, and dispute resolution.
Do I need to use a lawyer, accountant or notary to help me?
While helpful, it is not a requirement to have a lawyer, accountant, or notary help you when drafting or entering into a Licensing Agreement.
What is the easiest way to create a Licensing Agreement?
Using an easily fillable and intelligent legal template is the best way to create a Licensing Agreement, considering the complexity and multi-factorial elements that comprise a Licensing agreement. On your own, it would be very easy to make mistakes or miss important stipulations.
Why use our Licensing Agreement generator?
Our intuitive legal template generator will help you create and customize Licensing Agreement for your business. All you need is to answer a few simple questions in relation to this Licensing Agreement and our smart form will automatically generate a legal document tailored to your needs. Using formpros.com is by far easier and a lot more convenient as compared to drafting the agreement on your own, or even hiring an expensive lawyer.