… 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
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.
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