How To Set Up A Licensing Agreement

A licensing agreement is a written contract that gives you permission to use the property of another party under certain conditions. The two parties to the agreement are the licensee (who issues the authorization) and a licensee (who receives the authorization). Do your due diligence before the agreement. Both parties should carefully consider the other party. Check business credits and continuous management. Ask for a degree. Visit the offices and production sites of the other company. Try to do it. If a party has a license, it wants to make sure it is used in the right way. This part of the agreement describes how the policyholder is ensuring it. This may include regular quality assurance checks or the donor`s right to track sales.

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.” Licensing agreements are often used for the commercialization of technologies. A licensing agreement is a business contract shared by two parties. A licensee who owns the product or brand and the licensee who purchases the license with the intention of working with the existing product or brand. Simply put, it is a contract that allows one company to use the intellectual property of another company. Those who enter into a licensing agreement should consult a lawyer, as there are complexities that are difficult for those who do not have a deep understanding of intellectual property law. Subject – a complete description of the product or service offered for licensing. This is also the area in which patent, copyright or trademark numbers, if any, are included. There are many ways in which a licensing agreement can significantly increase your business, including: Most licensing agreements also deal with 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.