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Licence Agreement for Licensor

Key points and template

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Key Points Included in This Licence Agreement for Licensor

Confidentiality covenants regarding the licensed property and the agreement
What the licensee is allowed to do with and for what purpose it will use the licensed property
Details of the license fee and how and when royalties will be paid
Whether geographical restrictions apply
Whether the licensee is the only person that will have the right to use the licensed property
Duration of agreement and termination terms, including whether the license is automatically renewed
Protection of licensed property in case of infringements by third parties

Use This Licence Agreement for Licensor if …

… you own a business concept, software, app, or other intellectual property and would like another company to use it

… you want to market your intellectual property

… you want to manufacture your product with the help of another company

What is a Licence Agreement for Licensor?

Under a license agreement, the owner of intellectual property (licensor) grants another party (licensee) the right to use its property commercially against compensation (license fee and/or royalty).

The licensor retains the ownership of the property and the license only conveys the right to use the property within the agreed scope.

The most common types of licensed property comprise trademarks, digital assets like apps or software, copyrights, inventions, or patents. The license may apply worldwide or be restricted to a defined territory. It can be granted to the licensee only (exclusive) or other interested parties (non-exclusive).

If it is exclusive, the licensee will, as a rule, covenant and be incentivized to do its best to market the products or services derived from the licensed property. If other parties can access the licensed property, it will lose value. Therefore both parties will have an interest in treating all license-related information highly confidentially.