What Are The Types Of Licensing Agreement

 15 April 2021      

As any observer of American culture can attest, entertainment companies such as Disney maintain some of the most comprehensive trademark/copyright licensing programs. Each new character That Disney creates in its animated films is potentially allowed for dozens of merchandising applications such as toy figurines, clothing, lunch boxes, etc. (However, depending on the circumstances, licensed trademarks may technically be a copyright that is not a trademark, but a license.) The procedure is similar, albeit less visible, with most types of branded licenses, whether for the consumer market or for the industrial market. Licensing agreements cover a large number of known situations. For example, a retailer could enter into an agreement with a professional sports team for the development, manufacture and sale of goods bearing the sports team logo. Or a small manufacturer could concede a production technology owning a larger company to gain a competitive advantage rather than investing the time and money to develop its own technology. Or a greeting card company can agree with a movie distributor to create a series of greeting cards that carry the image of a popular animated character. Area: A license can determine the area affected by the rights. For example, a licence with an area limited to “North America” (Mexico/U.S./Canada) would not provide protection to a licensee against any action for use in Japan. They can also be distinguished in terms of licenses between business partners (easily defined) and licenses between property owners and end-users. End-user agreements are common for certain types of copyright licenses, especially for software and music. In this scenario, the end user simply pays for the limited right to use the property and generally does not attribute the property in any way.

Most other types of licenses are part of a business strategy between separate companies, none of which can be an end-user of licensed ownership that will generate new third-party end-user sales. With respect to partner licences, the licensee should resell the property in one form or another. Licensing agreements can be divided into three basic categories: trade secrets cover a variety of IP addresses, including formulas, know-how, software, commercial systems, manufacturing processes and all kinds of data, such as. B suppliers, competitors and customers. In a typical licensing agreement, the licensee undertakes to make intellectual property rights such as technology, brand name or licensee know-how available to the licensee. In exchange for the intellectual property of the licensee, the purchaser usually plays the donor a pre-feeding and/or a licence fee. A licence fee is an ongoing fee paid for the licensee`s right to use intellectual property. While parts of these agreements are similar, there are significant and important differences. Here is a brief summary of these licensing agreements and some of the main differences between them: for the taker, this agreement is a method to get something valuable that the taker cannot produce, but which may have expertise in this area to generate revenue. A licensee differs from a borrower or contractor who offers a service. When licensing, certain rights are assigned to the IP.

The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that would grant the image of a popular superhero to an action figure maker could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such an agreement. The film studio therefore has the lever to take its business elsewhere if the manufacturer has cold feet.