Licensing Agreement (IP)A Licensing Agreement (IP) is a legal document that enables a company to grant the use of its intellectual property to another business.
An Intellectual Property Licensing Agreement is a legal document that enables a company (a licensor) to grant the exclusive or non-exclusive use of its intellectual property to another business (a licensee), and also allows the licensor to set out the terms associated with the use of its intellectual property.
However, unlike an Intellectual Property Assignment, an Intellectual Property Licensing Agreement does not allow a licensor to transfer ownership of the intellectual property to another person or business. The Intellectual Property Licensing Agreement merely grants the right to use the intellectual property under the terms set out in the agreement.
This legal document incorporates general legal matters relating to the execution and nature of the licence as well as the licensee’s obligations under the agreement; such as licence fees, confidentiality, indemnity and the expiration or termination of the licence.
Use this Licensing Agreement If:
You want to grant someone the use of your intellectual property, but do not want to transfer ownership of the intellectual property.
You want to ensure that the person using your intellectual property uses it in a manner that was intended or agreed upon by you, and that they are aware of the consequences of non-compliance.
What does this Licensing Agreement cover?
Duration, jurisdiction and nature of the licence.
Nature of the intellectual property as well as its supply and use.
Warranties and indemnities
Licensee’s obligations: Licence Fees, Royalties, Stamp Duty, and GST.
Expiration, termination and revocation of the licence.