Licensing Agreement Or Contract

The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that would grant the image of a popular superhero to an action figure maker could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such an agreement. The film studio therefore has the lever to take its business elsewhere if the manufacturer has cold feet. 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. The issue of compensation is particularly important. Based on the ownership discussed in the license agreement, different payment models may be useful. The use of songs is usually offset by royalties, for example.

In other words, the owner of the copyright to a song is paid for each time the song is played on the radio, in a bar or even by another group at a live event. Other models may be a flat fee or even a rate per year/month/week. This type of agreement allows Harvard researchers who are creating a new licensed business without difficulty to copyrighted non-patentable software that they have developed as part of the faculty`s research efforts. In cases where there are patentable topics such as unique algorithms, please read the „Exclusive Basic License“ agreement model published above. 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. To view type trust agreements, hardware transfer agreements or research cooperation agreements, please return to our standard agreements site. If a party has a license, it wants to make sure it is used in the right way. This part of the agreement describes how the policyholder is ensuring it. This may include regular quality assurance checks or the donor`s right to track sales. A well-written licensing agreement is important for both licensees and licensees. If your business needs help at any point in the process, our team of contract lawyers can help.

Whether it`s developing the whole agreement or reading your own model, we have the know-how to make sure it`s done right. From a commercial point of view, the licensee has almost all the power in a licensing agreement negotiation.