What Is A Good Licensing Agreement


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Christian, Glynna K. “Joint Ventures: Understanding Licensing Issues.” The License Journal. October 2005. Certain basic representations and warranties must be given by each party to the other, such as.B. the ability to enter into this Agreement, the validity of the intellectual property, and a standard disclaimer of warranties. These and others are listed below. Confidentiality – In addition, a sub-agreement may be proposed to further protect Licensor`s property. This is the NDA – the non-disclosure agreement. This document prevents Licensee from sharing or discussing certain details of your Product with third parties. NDAs are quite simple to design and should be considered a mandatory part of your license agreement. In May 2018, Nestlé and Starbucks entered into a $7.15 billion coffee license agreement. Nestlé (licensee) has agreed to pay $7.15 billion in cash to Starbucks (the Licensor) for the exclusive rights to sell Starbucks products (single-use coffee, tea, bean bags, etc.) worldwide through Nestlé`s global distribution network. In addition, Starbucks receives royalties on packaged coffees and teas sold by Nestlé.

Licensing agreements cover a wide range of known situations. For example, a retailer may enter into an agreement with a professional sports team to develop, produce and sell products bearing the sports team logo. Or a small manufacturer licenses a large company`s proprietary production technology to gain a competitive advantage instead of having to spend time and money developing its own technology. Or a greeting card company could reach an agreement with a movie distributor to produce a series of greeting cards in the image of a popular animated character. A well-written license agreement is important for licensees and licensors. If your business needs help at any point in the process, our team of contract lawyers can help. Whether it`s creating the entire agreement or reading your own template, we have the expertise to make sure it`s done right. Included (specify) for ______________________For term agreement______ products; for a specific period ___For Territory______________________ subsidiary licence.

The licensee may be granted the right to allow another person to manufacture or sell his products. This depends on the specific terms of the license agreement. The other sections of the checklist are the “standard sections” of the license, although all of these terms are subject to negotiation. . . .

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