Most licensing agreements also deal with the issue of quality. For example, the licensee may enter into the contract conditions that require the purchaser to provide prototypes of the product, mockups of the packaging and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually achieved before the fact – by carefully checking the reputation of the licensee. Another common quality provision in licensing agreements is the method of disposing of unsold products. If stock items are sold as cheap knockoffs, this can damage the licensee`s reputation in the market. In 2015, Apple Inc. and telecommunications equipment maker Ericsson agreed to a comprehensive licensing agreement that ended a year-long patent litigation between the companies. Here`s another example: Salvatore has a line of T-shirts with a distinctive look that he has protected by trademark law. He sells a license to make the T-shirts to Carol, who pays him an advance and royalties based on the number of t-shirts she sells. Each licensing agreement is unique and these agreements vary by type (copyright, trademark, patent, etc.). In general, you will find these sections in most licensing agreements: Another common element of licensing agreements includes the party that retains control of copyright, patents or trademarks. Many contracts also contain a provision on territorial rights or distribution in different parts of the country or the world.
In addition to the various clauses included in the licensee protection agreements, some licensees may add their own requirements. They may insist on the guarantee that the licensee owns, for example, the property`s property rights, or they may insert a clause prohibiting the licensee from directly competing with the property granted in certain markets. Licensing agreements are often used for the commercialization of technologies. Exclusive and territory. The licensee is granted the exclusive right to manufacture and sell the product in a given territory. The licensee agrees that others are not allowed to sell the product in this area. This part of the agreement is usually accompanied by a clause. For a company that has an excellent product but does not have the capacity to manufacture it, licensing is a great way to market that product. Entrepreneur says that, among the possible opportunities to market a product, licensing “offers the greatest potential return on investment and has the greatest chance of success.” The licensing agreement allowed Starbucks to promote brand awareness outside of its North American operations through Nestlé`s distribution networks.
For Nestlé, the company has accessed Starbucks products and a strong brand image. The value of the brand can be positive or. A licensing agreement is a written contract between two parties, in which one landowner allows another party to use that property under a number of parameters. A licensing agreement or licensing agreement usually involves a licensee and a licensee. This agreement may cover different types of IP: Harvard also offers options agreements for companies considering obtaining licenses for Harvard technology. An option agreement allows a company to “keep” a technology for a short period of time during which the company can continue to assess its potential or find funds for product development without committing or harvard to comply with the obligations of a licensing agreement.