Both licensees and licensees want to be deepened in their agreements to ensure that nothing is overlooked. Both parties need to know what their rights are with respect to this relationship. Licensing agreements cover many factors, including exclusivity and territory. The licensee is granted the exclusive right to manufacture and sell the product in a given territory. The licensee agrees that others are not allowed to sell the product in this area. This part of the agreement is usually accompanied by a clause. The licensing agreement generally determines the region to which the licence applies, as well as a period of time. In addition, it should be indicated whether the licence is exclusive or whether other licensees can enter into a licensing agreement at the same time. Scale terms can also be included to determine the use of graphics for different versions (hard cover vs. paperback) of a book, z.B.

This could also prohibit use in advertising campaigns. 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. 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. In a typical licensing agreement, the licensee undertakes to make intellectual property rights such as technology, brand name or licensee know-how available to the licensee.

In exchange for the intellectual property of the licensee, the purchaser usually plays the donor a pre-feeding and/or a licence fee. A licence fee is an ongoing fee paid for the licensee`s right to use intellectual property. In a non-exclusive license, the licensee can grant the IP license to more than one licensee. These types of licensing agreements generally cost the licensee less. An example of a very common property contained in licensing agreements is the image of a cinematic superhero. Toy manufacturers will often allow it to sell action characters that are much more likely to be purchased if they are based on a popular superhero. Another common example is the licensing of a song for an advertising campaign or for use in a movie.