Licensing agreements are often used for the commercialization of technologies. 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. Pay attention to definitions. Make sure the product or process is completely and clearly described so that there is no misunderstanding about what is allowed. Each licensing agreement is unique and these agreements vary by type (copyright, trademark, patent, etc.). In general, you will find these sections in most licensing agreements: Licensing often involves intellectual property, such as trademarks, copyrights or patents. Digital assets such as applications and brands are often licensed. Prepare the property first. If you are selling or buying a license for a product, make sure that ownership of that product is clearly stated in the agreement.
Also, make sure that no one else uses the asset (z.B. a trademark) and that the trademark is registered or subject to copyright registration. You don`t want to enter into a licensing agreement and find out that someone else is questioning the property. 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. A licensing agreement is a legal document between two parties – the licensee or the person who owns the intellectual property (IP) and the licensee or person who obtains a license for the use of the IP address. The licensee may hold a copyright, trademark, patent, service mark, trade secret, know-how or other IP. Here`s another example: Salvatore has a line of T-shirts with a distinctive look that he has protected by trademark law.
He sells a license to make the T-shirts to Carol, who pays him an advance and royalties based on the number of t-shirts she sells.