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What is a Licensing Agreement? A licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor.
This legal framework is essential for protecting the rights of creators while enabling the dissemination and commercial exploitation of their work. There are three primary types of licensing that form the backbone of this system: open licensing, exclusive licensing, and non-exclusive licensing.
Key Takeaways. A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.
The 5 Critical Elements of a Software License Agreement Define the scope of the software license agreement. ... Protect your data and intellectual property. ... Allocate the risk among the parties. ... Define the service levels that the service provider must meet.
Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company. Some examples of things that may be licensed include songs, sports team logos, intellectual property, software, and technology.
Begin your license agreement by defining who all parties are. From there, add information about license grants, charges, licensee's obligations, intellectual property rights, limitation of liability, confidentiality, governing law, waivers, etc. End the template with an agreement form to sign.
How to Negotiate a Licensing Deal: Strategies and Best Practices Define your goals and priorities. ... Research the market and your potential partner. ... Prepare a compelling pitch. ... Be willing to compromise. ... Protect your intellectual property. ... Be patient and persistent.
Some advantages of software licensing include the 3 Ps of licensing: portability, piracy, and profitability.