IP License Agreement
Intellectual Property License Agreement
You’ve built up your company and now you’re ready to go to market. But you don’t want to lose control of your product’s IP once you sell it. If this is the case you’re going to need a license agreement.
WHAT DOES IT COVER?
An IP License Agreement is a contract which grants a person or entity permission to use another’s intellectual property (IP) in exchange for a fee. A license agreement can extend to registered and unregistered intellectual property and often contains constraints as to the use, sale, exploitation or otherwise of the intellectual property.
These agreements can be inter-company between an operations entity and an intellectual property entity (for well-structured businesses). Or it could be an arrangement between two (or more) separate entities whereby one wishes to commercialize intellectual property subject to the license, for example a software agreement.
WHY IS THIS IMPORTANT?
An IP License Agreement sets out the rights and responsibilities of both the licensee and the licensor. The benefit of a well-drafted agreement is that it protects the licensor from misuse or modification of the IP. It will also allow the business to commercialize its intellectual property whilst still retaining ownership and control. In other words, if property is licensed and not sold then you (the owner) can still improve, modify or amend it because you still own it.