Many of our clients are interested in starting a new business, expanding an existing business (extending territory or the nature of business) or improving the quality of the goods or services of their business and thereby its market position. In many situations, licensing of intellectual property rights is an effective tool for achieving these business goals.
A licensing agreement is a partnership between an intellectual property rights owner (licensor) and another who is authorized to use such rights (licensee) in exchange for an agreed payment (fee or royalty). A variety of such licensing agreements are available.
Types of Licensing Agreements
Agreement
In practice, all or some of these agreements often form part of one single contract since in transfers of this nature many rights are involved. Our clients also have the need for licensing agreements in other circumstances, such as during a merger or acquisition, or in the course of negotiating a joint venture.
Benefits of Licensing
All of these mechanisms, either on their own or in combination, will provide your business, as a licensor or licensee, a wide variety of possibilities in conducting business in your own country or elsewhere. As an intellectual property owner and a licensor, your business can expand its business to the frontiers of your partners’ business and ensure a steady stream of additional income. As a licensee, your business can manufacture, sell, import, export, distribute and market various goods or services which it may be prevented from doing otherwise.
In the international context, a formal licensing agreement is possible only if the intellectual property right you wish to license is also protected in the other country or countries of interest to you. If your intellectual property is not protected in another country or countries then you will not be able to license it and you will not have legal right to put any restriction on its use by anyone else.