An intellectual property license is essentially permission granted by one party (the licensor) to another party (the licensee) to make use of intellectual property which, without permission, would be illegal. The licensor retains ownership of the intellectual property and usually receives money in return for the granting of permission to the licensee.
For patents, the license may grant the licensee the temporary right to make, use or sell the invention. For trade marks, the license may grant the temporary right to use the trade mark.
The license must be in writing and should set out the territory covered by the license as well as the term of the license. The agreement should specify whether there will be royalty fees, a lump sum payment, or some other form of payment.
The license will also indicate whether the license is exclusive, non-exclusive, or exclusive except for the licensor. An exclusive license is one where the licensor grants rights to the licensee and to no one else. The licensor does not retain the right to use the invention or trade mark himself. A non-exclusive license is one where the licensor grants rights to the licensee, and reserves the right to grant other licenses to other licensees. The licensor retains the right to use the invention or trade mark himself. An exclusive license, except for the licensor, grants rights to the licensee and no one else. The licensor retains the right to use the invention or trade mark himself
For copyright licenses, you should make sure that the copyright license is registered with the Copyright Office.
No two license agreements are alike and it is important for your license agreement to suit your particular circumstances and objectives. An Intellectual Property Professional will be able to assist you.
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Copyright © R. William Wray & Associates 1995-2007 All rights reserved.
The comments contained herein provide a brief overview only and should not be regarded or relied upon as legal advice or opinion.
01/2007