Typical Licensing Agreement Terms

Dodano: 10:51, 19.12.2020

A license for patent rights held by Harvard is subject to conditions similar to those provided in the form agreements in the links below. Some concepts can be changed to take into account the clear aspects of each situation. In particular, financial conditions are established on the basis of the technology granted, the licensee`s business model and the market standards in the sector in which the taker operates. Confidentiality Agreement (confidentiality agreement, confidential disclosure agreement) (conclude) A legal document allowing the disclosure of intellectual property from one party to another, the latter being authorized to use the information for specific purposes, and only for the purposes specified in the agreement and which agree not to disclose the information to third parties. In the event of a significant disagreement over the terms of an agreement, the parties may take the issue of arbitration. Arbitration can be done in many different ways and it is easier to use the rules of arbitration in the agreement before there is a problem. 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.” Quality control and compliance. This is one of the most important sections for the licensee. If the products granted do not meet the quality standards set out in the contract, they will not be allowed for sale. Most licensing agreements define the licensee`s quality standards as a test protocol. A non-compete clause.

The licensee agrees not to allow anyone to compete with the licence in the area and period defined in the agreement. Christian, Glynna K. „Joint-Ventures: Understanding Licensing Issues.” The licensing newspaper. October 10, 2005. Harvard also offers options agreements for companies considering licensing Harvard technology. An option agreement allows a company to „keep” a technology for a short period of time during which the company can continue to assess its potential or find funds for product development without committing or harvard to comply with the obligations of a licensing agreement. Options are typically six months to a year and generally require both overcharging fees and a refund of patent tracking for the duration of the option. Payments. As noted above, the taker generally pays royalties to the licensee. There may be a first advance on royalties, then the continuous royalties are based on sales. Royalties can be paid on the basis of a percentage of turnover or a package. Think of the most appropriate method for both parties (and don`t forget inflation and exchange rates).

Maintain confidence for the specified time. Unrestricted to time______; Life ofagreement______ The licensing agreement should contain a language dealing with the issue of property disputes.