A licensing agreement seeks to regulate a wide range of commercial family of contracts which have, at their core, an asset being ‘rented’ out or licensed to a third party for reward (the licensee) by the owner of the asset (the licensor).
Examples of Licensing Agreements:
- the software and information technology arena where software is developed and licensed out to for use by the licensee;
- where goods or products are produced under licence; or
- use of patented technology owned by the licensor.
By their nature, these agreements are typically fairly complex and bespoke, but there are of course common traits across most licensing agreements.
It is really important that you regulate matters such as:
- the scope of the license;
- the territory;
- monitoring of quality and control;
- who owns the intellectual property attached to the underlying asset;
- that the third party under license is entitled to do with the software while under license; and
- how/when to terminate the relationship