LICENSING

Mariesz Pleyto
Maria Lea Collingwood
 LICENSING
the granting of permission to use intellectual property rights, such as trade
marks, patents or technology, under define conditions

a method of business expansion wherein a licensee pays for the rights to use
a particular trademark

Is based on contractual relationship between the licensor and licensee

License allows the licensee to use, make and sell idea, design, name or logo for
a fee

Licensor collects royalties and supervises the use of the license

Licensors do not influence the operations of the business

The arrangements between the licensor and the licensee are typically laid out
in a legal document known as a licensing agreement
 LICENSING
ARRANGEMENT
Is a legal contract. One party that owns certain intellectual
property (IP) grants a second party the right to use that IP for a
specific purpose, typically in return for payment or some other
benefit.
DIFFERENT LICENSING ARRANGEMENT
These cover innovation and science. Patent
PATENT LICENSING licensing agreements feature a patent
owner allowing someone else to use their
patent.

Trademarks signify commercial sources,

TRADEMARK like brand names, slogans, or logos.
LICENSING Trademark licensing agreements let the
trademark owners allow others to use their
IP.
DIFFERENT LICENSING ARRANGEMENT
Copyrights are often for paintings, music,
COPYRIGHT LICENSING movies, or characters. In addition, copyright
licensing agreements are often used in
consumer goods or distributorships.

Trade secrets aren’t registered with the

government. Unlike copyrights, trademarks,
TRADE SECRET and patents that are most valuable when
LICENSING registered with the federal government,
trade secrets are protected only by their
being a secret.
TYPES OF LICENSING ARRANGEMENT
Based on Relationship Between Licensor and Licensee
EXCLUSIVE
Is a legal contract between parties that
gives only the licensee the exclusive
rights to make and sell the piece of
intellectual property owned by the
licensor
A special feature of this agreement is
that even the licensor is prohibited
from using or exploiting the licensed
property till the license agreements
exists
SOLE
Is a legal contract between parties
granting both the licensor and the
licensee the exclusive right to make and
sell the piece of intellectual property
owned by the licensor
The licensor is also allowed to use or
exploit the license even during the
tenure of the license agreement
TYPES OF LICENSING ARRANGEMENT
Based on Relationship Between Licensor and Licensee

NON- EXCLUSIVE

Is a legal contract between licensor and

licensee where the licensor has the
authority to grant the license to
multiple licensees.

The licensor is also authorized to use

the licensed property during the time of
the agreement
TYPES OF LICENSING ARRANGEMENT
Based on the number of Licensors and Licensees Involved

UNILATERAL LICENSING
AGREEMENT

BILATERAL LICENSING MULTILATERAL LICENSING

AGREEMENT AGREEMENT

Duration
Perpetual. A licensee purchases the right to use the IP once and can use
it for a lifetime.
Term. Either the licensee pays a one-time fee for a certain term, or the
licensee can pay-per-use.
 ADVANTAGES
Quick, easy to enter in foreign markets

You get your product to market with very little or no capital

Potential for large return on investment.

The licensee’s market knowledge and experience will lower

the risk on the products performance.

Low risk, since you enter with and established product you
take fewer financial and legal risk.
 DISADVANTAGES
The license period is usually limited.

Your licensee may become a competitor.

You will have only low level of control.

The licensor could license the same product to one or more

of the licensors competitors.

Poor quality management can damage your brands

reputation in other license territories.
THANK YOU
https://www.contractscounsel.com/b/typ
es-of-licensing
https://corpbiz.io/license-agreement