Licensing -a legal agreement to use a trademark, trade name or copyrighted design on a product or service with the motive of making a profit. A licensing agreement includes a Licensor, who owns the property rights involved. The Licensor grants those rights to the Licensee to use in making a profit. In return, the Licensee pays the Licensor a fee to use the property. Licensing covers three "P"'s: promotion, profit and protection. The Licensor receives protection through the agreement and Licensee use the property for promotion and profit seeking.
Property types to license:
- Copyrights - original works of authorship fixed in any tangible medium of expression.
- Patents - cover inventions.
- Trademarks - words, names or symbols that identify goods made or sold, and that distinguishes them from goods made or sold by others.
Components of an agreement:
- Term (the length of the agreement)
- Revenue streams, fees, royalties
- Rights to modify and combine with other products, if any
- Prohibited uses
- Rights to transfer and sublicense
- Rights to source code
- Acceptance, testing and training procedures
- Warranties
- Limitations on the licensors liability
- Support and maintenance services
- Nondisclosure of confidential Information
- Indemnity for infringement
- Enforcement of remedies
- Terminating the contract
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