WHAT IS A LICENSING AGREEMENT?
A licensing agreement is a legal document that outlines the terms and conditions permitting the licensee to use, market, or sell a product, technology, or intellectual property owned by the licensor. Licensing agreements may be a valuable legal tool for a licensor who can focus on improving or manufacturing the product or technology while allowing the licensee to focus on marketing and selling the product. For example, a company may authorize an individual or business entity to use a specific trademark or business name through the execution of a licensing agreement. A licensing agreement will generally include information about the licensor and licensee, the fees or royalties to use the license, the term of the licensing agreement, the geographical area the licensee may market or sell the product or technology if any, the scope of the license, whether the licensee has exclusive use of the license, instances leading to the termination of the license agreement, and any other terms and conditions stipulated by the licensor. If the product or technology being licensed includes the use of trade secrets, the licensor may require the licensee to enter into confidentiality and non-disclosure agreements to further protect the licensor and their intellectual property. Licensing agreements may be very complex and lengthy to protect the licensor and their intellectual property, so it is always recommended to have an experienced intellectual property or business lawyer review the agreement prior to signing it.
If you are looking to enter into a licensing agreement, contact us today to set up an initial consultation.
Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.