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What is product licensing? Product licensing is a legal agreement between two organizations in which a product's copyright holder allows another company to sell the product in a designated region. The company selling the product may compensate the rights holder through a flat fee, a percentage of sales or both.
An example of a licensing agreement in the restaurant space would be when a McDonald's franchisee has a licensing agreement with the McDonald's Corporation that lets them use the company's branding and marketing materials.
3. Trademark license agreement instructions Introduction of Parties. ... Recitals. ... Section 1: Grant of license. ... Section 2: No assignment or transfer. ... (Optional) Section 3: Territory. ... Section 4: Consideration. ... Section 5: Maintenance of records and audit rights. ... Section 6: Term.
These are some common types of licensing agreements: Trademark license - outlines how you may use a trademark Patent license - outlines your right to sell, use, make distribute and export a product that is patented Copyright license - outlines your right to reproduce and sell copyrighted assets.
"At Coca-Cola we view licensing as a powerful marketing tool," says Dwyer. "It provides us with an opportunity to support, enhance and ultimately extend our brand messages through relevant product categories.
While others prefer to receive a percentage of gross revenue earned by the company that is using their trademark. Depending on the perceived value of your trademark, this licensing fee can range from a few hundred dollars to several thousands.
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.
Example of a Licensing Agreement Nestle (the licensee) agreed to pay $7.15 billion in cash to Starbucks (the licensor) for exclusive rights to sell Starbucks' products (single-serve coffee, teas, bagged beans, etc.) around the world through Nestle's global distribution network.