The benefits of licensing can be viewed from two angles: licensees and licensees. The scope of the licence describes issues such as the geographic boundaries of the agreement. For example, a copyright agreement can only grant a publishing house American rights to a novel, while foreign rights are negotiated separately. In the software world, the licensing agreement determines the number of computers on which a licensee can install new software or whether the company has the right to change the code. Developing a foolproof licensing strategy ensures that your product is not only protected, but will also benefit your overall brand. Here are a few steps to follow before signing a licensing agreement: 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. Describe how royalties work.
What`s paid when? Does the property remain the original owner for the duration of the licence? What will happen if the minimum turnover is not met? Is there an advance on royalties? Licensing agreements guarantee that you have legal permission to use the assets of another person or company. For example, if you used an artist`s song in an advertisement, you would have to sign a licensing agreement to do so legally. If you use the song without permission, you may violate copyright laws and risk being sued or fined. One of the most important elements of a licensing agreement is the financial agreement. Payments made by the licensee to the licensee are usually made in the form of guaranteed minimum payments and royalties for sales. Royalties are generally between 6 and 10 per cent, depending on the ownership and the degree of experience and sophistication of the licensee. Not all licensees need guarantees, although some experts recommend that licensees receive as much compensation in advance as possible. In some cases, licensees use warranties as the basis for renewing a licence agreement. If the taker completes the minimum sales figures, the contract is renewed; Otherwise, the licensee has the option of terminating this relationship. Prepare the property first. If you are selling or buying a license for a product, make sure that ownership of that product is clearly stated in the agreement. Also, make sure that no one else uses the asset (z.B.
a trademark) and that the trademark is registered or subject to copyright registration.