Licensing Agreement Short Definition

Some of these laws give the intellectual property owner automatic cover. In other cases, such as patents, the protection process is complex and requires specific actions from the inventor. A person must know their intellectual property rights before entering into licensing agreements. A licensing agreement is an agreement by which a licensee grants another company the right to intangible ownership for a specified period of time and the donor receives a royalty from the taker in return. Intangible property includes patents, inventions, formulas, processes, drawings, copyrights and trademarks. [8] A licence is granted by one party to another party as part of an agreement between these parties. In the case of a government-issued licence, the licence is obtained by application. In the case of a private party, it is a particular contract, usually in writing (for example. B a lease or other contract). The simplest definition is “a licence is a promise not to file a complaint” because, with the exception of a marriage license (which grants only official recognition of the relationship between the two persons), a licence of the licensed party allows either to engage in illegal and criminal activity without the licence (p.B. fishing, driving a car or operating a radio or television channel) , to do something that would violate the rights of the licensing company (for example.

B make copies of a copyrighted work) that could be sued without the license, the conceded, civil, criminal or both. Under a typical end-user licensing agreement, the user can install the software on a limited number of computers. [Citation required] Patent licenses have been studied in formal business models in the field of industrial organization. In particular, Katz and Shapiro (1986) studied the optimal licensing strategy of a research laboratory sold to competing companies in the product market. [15] It appears that the licensee`s incentives to develop innovation may be exaggerated (compared to the social protection solution), while the licensee`s incentives to disseminate innovation are generally too low. Subsequently, the pioneering work of Katz and Shapiro (1986) was extended in several directions. For example, Bhattacharya, Glazer and Sappington (1992) have taken into account the fact that licensed companies need to invest more to develop marketable products. [16] Schmitz (2002, 2007) has shown that due to negative selection or moral risk, asymmetric information can lead the research laboratory to sell more licenses than would be the case for complete information. [17] [18] Antelo and Sampayo (2017) studied the optimal number of licenses in a signalling model. [19] Intellectual property licensing plays an important role in the economy, science and radio. Business practices such as franchising, technology transfer, publication and merchandising of character depend entirely on the licensing of intellectual property.

Landing licences (ownership licenses) and IP licences are sub-sectors of law resulting from the interaction between general contract laws and specific principles and laws relating to those respective assets. With so many areas of negotiation for a licensing agreement, anything can cause problems. This is particularly the case when the lawyer who writes the license agreement uses too broad a language. Nevertheless, four areas are the most likely causes of licensing litigation: Christian, Glynna K. “Joint Ventures: Understanding Licensing issues.” The licensing newspaper. October 2005. Another common element of licensing agreements is the party that retains control over copyrights, patents or trademarks. Many contracts also contain a provision on territorial rights or distribution in different parts of the country or the world.