Notice of proposed third-party products – In the case of an exclusive license granted in all or in many areas, the licensee may first focus on a limited number of products or uses for the technology granted. In order to support Harvard`s mission to promote the common good by commercializing Harvard`s technology as widely as possible, Harvard may include provisions similar to those in the link below, to encourage a taker to develop third-party products or to sublicate the Harvard patent licensee`s rights to a third party to enable the development and commercialization of additional products. Intellectual property can be as valuable (or more valuable than physical property). This is because intellectual property (IP) can be shared with other people in exchange for licensing rights, which is a valuable source of passive revenue for IP owners. There are many other ways to pool efforts to promote and sell a product or service ranging from joint participation of a single entity to distribution and distribution agreements to joint ventures (partnerships of two or more companies). In most cases, a license is the preferred method by an individual or entity that simply wants a totally passive role to obtain royalties without even being involved in day-to-day or strategic marketing decisions. One customer said, “I just want to sit down and cash my royalty cheques.” Wilcox, Deborah A. and Rosanne T. Yang. “Character License.” The licensing newspaper. Januar 2006.
Charles Frost. “A good deal is protecting your intellectual property.” Pipeline – Gas Journal. May 2005. Mr. Zweck. The parties are referred to by derin name names, the following referred to as “licensees” and “licensees” or short names. 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.
As with any commercial enterprise, licensing agreements are not without its drawbacks. Here are some drawbacks of granting intellectual property licenses: non-compete convention.