Enter Into License Agreement
What will happen to the ownership of the product in the end (normally it is transferred back to the owner)? A license agreement is a favorable agreement between two parties, the licensor and the licensee. In a typical license agreement, the licensor grants the licensee the right to manufacture and sell goods, to enforce a trademark or mark, or to use a patented technology of the licensor. In return, the licensee generally submits to a number of conditions relating to the use of the licensor`s property and undertakes to make payments called royalties. Non-competition. The licensor undertakes not to allow anyone to compete with the licence in the area and period specified in the agreement. From the cam. Detailed description of the product, service or trade secret that is allowed. This part may contain patent, copyright or trademark numbers. Each license agreement is unique and these agreements vary according to their nature (copyright, trademark, patent, etc.). In general, you will find these sections in most licensing agreements: Describe how royalties work. What is paid when? Does the ownership remain originally for the duration of the licence? What will happen if the minimum turnover is not reached? Is there an advance on royalties? Since licensors want (and should) retain some control over their products and services, most agreements have affiliation or under-sales requirements. These can be as simple as authorizing before the negotiator can start work or so strict that the partners sign an additional agreement with the licensor. Exclusivity can be a wonderful thing, but it can also be dangerous for small businesses.