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By Practical Law Intellectual Property & Technology. An agreement for the licensing of intellectual property (IP) by a parent, IP holding company, or other company to an affiliated company within the same corporate group.
A license fee is typically a one-off payment, i.e., a fixed amount paid upfront. A royalty fee (royalties), on the other hand, are usage-based payments, i.e., continuous periodic fee payments.
A technology licensing agreement is a contract that outlines the terms and conditions of a licensing agreement between a technology company and a party purchasing the use, reselling rights, or rights to change a particular software product or intellectual property of the technology company.
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.
An Intercompany Agreement (?ICA?) is usually a commercial agreement for services, the sale of goods, financing or intangible property made between companies related through ownership, under common control or part of the same group of companies.
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.