Abedi, K. (2018, October 22). So you invented something. And now? (License your product). Retrieved from sites.psu.edu/entrepreneurshiplaw/2018/10/22/so-you`ve-invented-something-now-what-licensing-your-product-agreement/. Licensing agreements and agreements must be beneficial to both parties. The licensor grants the right to exploit one or more plots of land and the licensee brings his knowledge to the industry concerned. The result is a relationship that is akin to a partnership or joint venture. The licensee is able to retain the profits generated by the use of the assets of the license.
In return, the licensor receives an agreed royalty on these profits for the current use of its assets. Most licensing agreements also include a one-time down payment to access the desired items. Generally speaking, licensing is an important starting point for companies considering international expansion. Licensing agreements give a foreign company the right to manufacture and/or sell the products of another company in its country. Sometimes an agreement may include production and sale in multiple countries. The licensee generally complies with a series of requests from the licensor regarding the licensor`s ownership and undertakes to make license payments. A license agreement is a complex legal document that contains details about a contract. This may include specifications such as: In the business world, a license allows a company to use a property right with certain restrictions, while the licensor retains ownership of the product. For example, a apparel company may grant a foreign manufacturer the obligation to use its specifications and designs to manufacture clothing under a U.S. licensing agreement. Once you`ve made a licensing deal, this walk to the mailbox will be reminiscent of your childhood after a long day — but this time it`s a white business envelope that holds a far more lucrative sum than the five dollars of gold in previous years. All you have to do is check the shelves of stores for your invention, observe your sales, and wait for the golden ticket to arrive – your first license check.
The license agreement should contain a language that addresses the issue of property disputes. . . .