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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.
At the heart of this process are two primary forms of licensing: exclusive and non-exclusive. These forms represent the divergent paths through which intellectual property can be commercialized, each with its own set of implications and strategic considerations.
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.
Exploring the Dual Nature of Licensing Agreements At the core, there are two primary types of licensing agreements: exclusive and non-exclusive. These contracts are the lifeblood of various industries, ensuring that creators and owners can monetize their work while allowing others to use it under specific conditions.
The term ?outbound licensing? or ?out-licensing?, refers to granting a licence to another party to use your IP whereas ?inbound licensing? or ?in-licensing? means obtaining a licence from another party, to use its IP for your own use.
The most commonly used licensing agreements will include trademarks, technology, and trade secrets. Many times, these agreements will include more than one form of intellectual property. Many agreements have some similarities, but there are some significant differences as well.
The important difference is the fact that a software license provides a product that is tangible, whereas a SaaS agreement is based on a service. For those who draft software contracts, confusing SaaS agreements and software licenses are a common occurrence.
Licensing agreements allow parties to control property and enter new markets without having to spend the money to do so. Drawbacks of these deals include establishing a relationship with the wrong company and the possibility of losing a company's reputation.