Intellectual Property or IP is a number of distinct types of legal monopolies over creations or any intangible asset that consists of human knowledge and ideas of the mind, both artistic and commercial, and the corresponding fields of law. Intellectual property may take the form of copyrights, trademarks, patents, software, industrial design rights and trade secrets in some jurisdictions.
To improve quality of services or goods offered to client or to expand the existing business many business owners (Licensee) apply for licensing of Intellectual Property rights. A royalty or a fee is paid to the Intellectual Property owner (Licensor) in exchange for the authorized use of the license. The licensor and licensee usually agrees on those terms and conditions by negotiation. Using Intellectual Property right without the license would be an infringement of IP.
Licensing agreement is broadly categorized as follows:
• Technology License Agreement.
• Trademark Licensing and Franchising Agreement.
• Copyright License Agreement
The licensor license is the right given to the Licensee to use, manufacture, and sell of the products; the licensor receives the revenues from that license but does not take the risk of promoting, manufacturing and selling the products. The licensee has the right to use the Intellectual Property without the expense and risk of the research and the costs of developing the product.
Related posts: