You invented something, it received a positive evaluation and filed a patent. Or maybe your company doesn`t have the capital or know-how to manufacture its product and market it in a global market. Inventors often prefer to concede their technology rather than try to manufacture and commercialize it themselves. Similarly, licensing may be the only practical way for a company to maximize the potential of its existing products. Licensing can be done by a single company, but if that`s not possible, another solution is to consider a multi-way approach to licensing, in which multiple components are made by different manufacturers, final assembly by another, and perhaps distribution by another. This can divide the risk if the size of the project is deemed too large by a licensee. Whether you are a licensee who manufactures a product or the trademark owner who will license your product, the definitions, requirements and conditions set out in the license agreement are essential. As many of us have no idea how to find a trademark licensing professional, we refer the hearing of the terms and conditions to our lawyers. A license agreement is a favorable agreement between two parties, the licensor and the licensee. In a typical license agreement, the licensor grants the licensee the right to manufacture and sell goods, to enforce a trademark or mark, or to use a patented technology of the licensor. In return, the licensee generally submits to a number of conditions relating to the use of the licensor`s property and undertakes to make payments called royalties.
The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that conceded the image of a popular superhero to an action character manufacturer could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such a deal. The film studio therefore has the leverage to relocate its activities elsewhere if the manufacturer is cold on its feet. Non-competition. The licensor undertakes not to allow anyone to compete with the licence in the area and period specified in the agreement. For a company that has a great product but isn`t able to make it, licensing is a great way to bring that product to market. Entrepreneur says that licensing the possibilities of commercializing a product “offers the greatest potential return on investment and has the greatest chance of success.” A license for Harvard`s own patent rights is subject to conditions similar to those set out in the form agreements in the following links. .