Licensing agreements are the conditions under which one party can use the property of another party. While the real estate concerned may include a large number of properties, including real estate and personal property, licensing agreements are most used for intellectual property, such as patents and trademarks, as well as copyrights for written material and visual arts. The final licensing agreement should accurately reflect the terms of sale agreed by the parties, with assurances, guarantees, agreements and appropriate conditions to take into account the results of diligence and the distribution of risks between the parties. Most licensing agreements also deal with the issue of quality. For example, the licensee may enter into the contract conditions that require the purchaser to provide prototypes of the product, mockups of the packaging and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually achieved before the fact – by carefully checking the reputation of the licensee. Another common quality provision in licensing agreements is the method of disposing of unsold products. If stock items are sold as cheap knockoffs, this can damage the licensee`s reputation in the market. 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. The scope of the licence and the definition of rights and technologies granted are probably the most “essential” provisions of the agreement.
The licensee will want to ensure that the license contains all the rights it needs now and in anticipation of future growth to produce and sell the products. The licensee will want to ensure that the scope of the licence is not overly broad (this may result in the involuntary granting of rights to technology or other intellectual property rights that are not necessary to manufacture the products, or a violation of the terms of an existing agreement with a third party). A licensing agreement is a commercial agreement between two parties. The licensee (the licensee) owns the licensed assets and the buyer pays the right to use the license. The licensee pays royalties to the owner in exchange for the right to sell the product or use the technology. In order to support local entrepreneurs and startups (many of whom do not have the time and resources to negotiate the terms of a “usual” license in), a new and growing trend among universities is to offer “Express licenses” – a predefined model license developed for startups with a fast and optimized verification process.